News
Huge Flood Damage Bill For UAE Businesses
| March 3, 2010 by Rob Morris
Most companies across the emirates are not insured against flooding, according to analyst.
Flood damage bills in the UAE could amount to millions of dirhams for local companies, most of which are not covered against natural disasters, an insurance broker has reportedly claimed.
Heavy downpours caused chaos in Dubai, Abu Dhabi and Sharjah this week as motorists were stranded across the emirates. Meanwhile, shopkeepers and small business owners had to clean up after water seeped into their premises.
But with torrential rain showers a rarity in the UAE, most businesses are reluctant to pay extra for cover against such risks, according to a commercial broker at Nexus Insurance Brokers.
Speaking to a UAE daily news site, the broker said only companies in the warehouse or storage industry considered heavy rain a potential risk.
“They don’t see it as a necessity, so they don’t take it [natural disaster insurance],” the broker said.
More than $4bn worth of damage was caused in Oman three years ago when Cyclone Gonu hit the Arabian Sea.
