UK companies could be putting themselves at risk by not having adequate business insurance to cope with climate change, according to new research.
Some 90 per cent of UK small businesses in high-risk areas do not have adequate business insurance to protect against climate risks such as flooding, the study by Axa reveals.
Furthermore, 70 per cent in potential flood areas are "unconcerned" about the possible risks, research from the business insurance provider indicates.
Axa's survey also shows that the average business insurance claim for interruption has risen by 60 per cent in the four years leading to 2005, at £35,000.
Also, though many companies expect to recover from flooding in one month, it can take up to two months, potentially causing greater disruption, Axa asserts.
Peter Hubbard, chief executive of Axa Insurance UK, says: "The insurance industry, government and other relevant parties must work much more closely together to ensure that businesses understand the scale of the threat posed to them and what actions they can take to reduce these risks."
Earlier this year, Sir David King, the government's chief scientific advisor, claimed that Britain is at risk of "coastal attack" from rising sea levels.




