How disaster-ready are your commercial insureds?
"To prepare for disaster, policyholders must learn to think more like insurance companies."
With hurricane season looming and threatening an early start, it's important to remember that disasters come in many forms. They may be weather related or, as we're seeing all too frequently, they could come in the form of a data breach or a computer hack. Here in New England, they might come in the form of one-too-many Monday closures due to back-to-back blizzards. Whatever the form, disasters by their very nature are disruptive and costly. We opened with a quote from an article in a recent Risk Management magazine: Preparing for Disaster: A 12-Step Program for the Practical Policyholder.
"When it comes to disasters, insurance companies are the masters of the game. While corporations are exposed to business-threatening disasters (e.g., earthquakes, hurricanes, liability for gradual or sudden environmental damage) about once every 30 years, major insurance companies face disaster claims every day. Policyholders stand little chance of obtaining the coverage they paid for, unless they prepare in advance of disaster to limit the scope of losses and educate themselves in the rules of insurance coverage."
The article is from the archives, written by Eugene R. Anderson (1927-2010), the founder of Anderson Kill, a pioneer in insurance coverage litigation who was often described as the "dean of policyholders' attorneys," as noted by BusinessWeek. The article offers 12 steps to help policyholders plan for disasters - it might be a good link to share with your commercial insureds.
Here are some other resources for businesses disaster planning
Preparedness Planning for Your Business - Ready.gov
Sample Business Emergency Plan (PDF) Ready.gov
Six Ways to Prepare Now for Atlantic Hurricane Season
Disaster Planning - SBA