The demand for warehouse insurance policies has increased in the post-rainy period as businesses are keen to protect goods stored in warehouses.
Small and large businesses were severely disrupted by record rainfall on 16 April, which damaged property and vehicles. It was the heaviest rainfall in the UAE in 75 years. Some areas in Dubai, Sharjah and Ajman remained flooded for several days after the rains.
Since April, there has been a 45% increase in general insurance claims, mostly due to flood damage, according to a report in Khaleej Times.
Insurancemarket.ae CEO Avinash Babu said, “Our general insurance portfolio had seen a significant spike in claims following the incident.”
He said, “Normally, one would expect an increase in interest from retailers in securing their stores after such incidents, but this trend has not been observed among store owners. Interestingly, we have observed a significant increase in interest in warehouse insurance from businessmen, with inquiries increasing by almost 20%. This indicates a growing awareness of the need to protect storage facilities from such risks.”
eSanad CEO Anas Mestarihi said, “Following the heavy rains, there was a noticeable increase in inquiries and interest in property insurance, but the actual purchase rate remained low due to many people’s lack of awareness of the extent of insurance coverage and the protection it provides.”
Retailers typically choose a combination of insurance coverage based on their specific needs. The minimum coverage typically includes a standalone “property all-risk” policy. For comprehensive protection, many retailers opt for multi-option policies that include property, general liability and workers’ compensation coverage.