Could water damage affect business accounts?

Water damage suffered over the festive period could have a significant impact on a business' bank accounts.

Although some businesses may be looking forward to closing over the festive period, new research shows that many could be entering the new year with a financial headache if they do not take the necessary precautions.

Indeed, research by Aviva reveals that commercial insurance claims caused by frozen pipes and water leaks rises by some 20 per cent during the winter months.

And as the typical claim for such damage in January stands at around £3,100, such a disaster could have a significant effect on firms' business accounts.

"The damage and cost to a business as a result of water escape can be just as devastating as that of a fire or flood," Paul Redington, property claims manager for Aviva, points out.

However, businesses looking to get themselves back on track may find that using a business credit card can be an effective means of paying for repairs to their property.

Ensuring regular checks and servicing of all water and plumbing systems and having the right insurance in place could also be of assistance.

Meanwhile, Abbey and Alliance & Leicester Business Banking recently noted that those firms looking to improve their environmental credentials should not only consider projects such as recycling schemes but also seek out a competitive UK account which can help them free up money to re-invest in energy-efficient projects.