In an article published recently in Insurance Journal, Chris Frederick provides insight to how the recent snow storms in the Northeast caused many businesses a loss of revenue they were not anticipating, and how businesses can better prepare themselves in the event of weather implications. While the exact impact is not easy to calculate in a precise dollar figure, businesses suffer significant financial losses due to closures, reduced productivity and unexpected expenses, Frederick explains.
There are many steps businesses can take to protect themselves from losses due to storms and other similar disasters, which include a strong crisis communications plan, company-wide implementation of disaster procedures and the procurement of business interruption insurance, he says. Frederick explains three types of business interruption claims: losses suffered as a direct result of physical damage to covered property, extended period of indemnity and contingent business interruption coverage that would allow the insured to recover losses as a result of damage to someone else’s property. Finally, he says that complex claims involving business interruption typically remain open for a period of time after all repairs are completed, so they tend to take longer to resolve than others.
For the full article, please click here.