Floodbase, a platform focused on insuring flood risks beyond traditional coverage, has partnered with insurance intermediary Yokahu to introduce automated parametric flood insurance in New Orleans.
The initiative aims to provide faster, more flexible financial protection for businesses impacted by regional flood events.
In contrast to the National Flood Insurance Program (NFIP)—which remains the primary source of flood insurance for most New Orleans businesses—the new policies go beyond covering only direct physical damage.
NFIP commercial coverage is limited to $500,000 and excludes indirect losses such as business interruption and revenue decline.
As demonstrated by Hurricane Ida in 2021, these gaps can leave significant exposures; the storm caused over $3 billion in business interruption losses alone.
Backed by an AM Best “A+” rated carrier, the new parametric policies are triggered automatically when floodwaters cover a predetermined portion of the city, as continuously monitored by Floodbase’s remote sensing technology. No damage inspection or claims process is required—payments are issued based on measurable environmental data.
The policies are available through Yokahu’s cat-risk.com digital platform, which enables brokers to access quotes and coverage options quickly and transparently. Clients can select from a range of predefined coverage tiers based on their risk profile and financial needs.
As the payout is based on the geographic extent of flooding rather than damage to specific properties, the solution offers coverage to businesses often overlooked by standard flood insurance—such as those on upper floors or in minimally affected buildings. Funds can be used flexibly, including for operational costs, cleanup, revenue loss, and temporary relocation.
This new approach is designed to close critical coverage gaps, particularly for New Orleans’ tourism-driven economy. With parametric insurance, businesses gain access to faster capital and broader protection, helping to maintain continuity and resilience amid increasing flood risk.
“New Orleans businesses have gone far too long without adequate flood insurance options, leaving them vulnerable and financially exposed in the event of major floods,” added Bessie Schwarz, Co-Founder & CEO of Floodbase.
“We are excited to partner with Yokahu, to empower brokers with instant quotes of new, holistic flood coverages that put businesses in a stronger position to weather the aftermath of a catastrophe.”
“With our new flood coverage options, Yokahu and Floodbase will meet a vital need for New Orleans businesses, including its beloved hospitality sector,” said Tim McCosh, CEO & Founder of Yokahu.
“Yokahu is thrilled to bring our insurance capacity and automated, state-of-the-art platform to rapidly quote and payout claims for New Orleans commercial customers. We are delighted to be collaborating with Floodbase and consider this only the beginning of the areas we will cover across the US.”
