Much has previously been written about domestic water claims but escape of water (EoW) can pose just as much a problem for commercial premises, with the potential of causing significant damage and bringing about a business interruption event.
Further, there seems to be no sign of EoW claims abating. According to recent data from the Association of British Insurers (ABI), whereas other commercial property claims trends have trended downwards, the number of escape of water claims has steadily risen over the last 15 years. Further, the average cost of a commercial EoW claim increased by 22% between 2016 and 2018, from £4,167 to £5,349.
Causes are wide-ranging, from corroding pipes in older premises to faulty air conditioning systems. Long-term unoccupancy can also exacerbate an existing issue, since any undetected leaks may become more substantial and increase claims costs. The repercussion for businesses can include damaged stock, an impact to supply chains and costly building repairs.