Companies Lack Cover Against Natural Disasters, Commercial Insurance Brokers Say
Many companies worldwide may be uninsured or under-insured in the advent of a natural disaster, a study conducted by a group of US-based commercial insurance brokers alerts.
Based off the opinions and recommendations of eighty different sets of commercial insurance brokers, operating all around the world, the survey, divulged this week, warns small and medium-sized companies of the importance of acquiring proper insurance cover to prevent against property damage caused by a natural disaster.
The study in question pinpoints inland flooding as the most likely natural disaster to occur, but also accounts for hurricanes, earthquakes and tsunamis as relatively common risks worth insuring against, especially since, according to the commercial insurance brokers interviewed, roughly half of each office’s clients believed their exposure to, and potential risk resulting from, these types of catastrophes had increased in the past five years.
These companies recommend that clients make sure they are properly insured against natural disasters, have a business continuity plan, and have a civil infrastructure which promotes preparedness and quick response. Most commercial insurance brokers feel the second of these three measures is the one costing more clients in the event of a natural disaster.
When queried about factors which might indicate preparedness in case of a natural catastrophe, most of the commercial insurance brokers interviewed mentioned support from senior management, budget and resources as determinant factors. Risk management contingencies and a civil infrastructure were similarly seen as important.
Although natural disasters are not quite as common in the United Kingdom as in other parts of the world – such as North America, where the article emanates from – we here at Watson Laurie like to keep our customers informed about lesser-known types of commercial insurance available which they might want to consider. So if any of our clients feels they should prevent against natural disasters, the survey from our fellow commercial insurance brokers in America offers clues on how to go about doing so!