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W
HILE NO ONE
could have predicted the severity, duration,
and breadth of devastation that Hurricane irene wrought on
businesses and residents, one thing is clear: Hurricane irene is a
sign of more frequent and severe storms to come, extending to
inland areas. Businesses impacted by Hurricane irene have
encountered a host of insurance and financial issues that are
making it difficult or impossible to collect on and/or file claims
with insurance carriers. Companies located in and outside of
flood zones should take note and address these issues before
the next disaster erupts.
Lack of Proper Insurance Coverage
“one of the biggest problems mid-size businesses face is the
inability to recoup operation losses caused by Hurricane irene,”
notes william A. Cilente, ii, Regional executive Vice President and
Property and Casualty insurance Practice Leader for middle-mar-
ket insurance broker marsh & mcLennan Agency LLC. “that’s
because a significant number of businesses are either uninsured
or underinsured for lost income and/or property damage result-
ing from flooding.”
Flood Insurance Underutilized
Flood insurance, like earthquake insurance, is not generally
covered in standard property policies. Yet, according to the
New York-based insurance information institute, only 5 percent
of flood insurance policies issued by the National Flood
insurance Program (NFiP) are purchased by businesses.
By William A. Cilente II,
Vice President, Marsh
& McLennan LLC
Before the
Next Big Storm
Hurricane Irene has exposed a flood of insurance
and financial issues that businesses must address.
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2011
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