Beyond Earth, Wind, and Fire

Business risks companies may not have considered

By Joseph Mascali, AVP Procor Solutions + Consulting New York Times Square Office

The extraordinary 2017 hurricane season, earthquakes in Mexico, and the devastating California wild fires have impacted businesses in myriad ways. Direct physical loss and damage are not the only effects of these events and businesses need to know how to prepare, and respond to those that may not appear as obvious. Organizations with proper coverage, a plan and the right partners have the assets that not only increase their probability of surviving the crisis at hand, but may also put them at a competitive advantage after it’s over. It is this type of risk management and thinking that Procor experts provide clients. By working with your team, our team can increase your business’ resilience.

Business interruption – the cessation or slow down of operations – has caused some business to close completely, not able to quickly restore their properties and resume operations in time.

Business Case 1: The restaurant chain in Florida that closed multiple locations because of evacuation orders and other civil authority proclamations needs the right insurance coverage, terms and conditions to make up for these closures.

And beyond damage to their own property, business owners are now recognizing the impact of damage to a key customer or supplier.

Business Case 2: The luxury hotel in Napa that did not sustain fire damage, nevertheless is experiencing significant income loss due to damage to the vineyards that normally attract guests to the hotel. That vineyard damage has resulted in a loss to the hotel because guests are not visiting the nearby attraction properties – and only with the right amount of Contingent Business Interruption coverage, can the hotel withstand the income losses.

Business Case 3: In addition, companies are now experiencing perhaps an even greater loss – the impact to the business resulting from damage to property owned by their employees. These wild fires are not only consuming vast estates of land; they are destroying people’s lives. Federal and State governments are stretched responding to large disasters across the country and this may delay aid to individuals. With that, companies are recognizing the need to trigger help for their own employees - getting them emergency response and restoration; offering advice and guidance on insurance and FEMA eligibility; providing grief counseling and other professional help; and creating disaster funds that can get money to those impacted by these fires much quicker than any other source. The benefit to these progressive companies in creating and implementing an Employee Disaster Recovery program is clear – protecting their greatest asset, the employees who produce their product or service, and assisting them in their time of need. Helping an employee deal with the fires, getting them on the road to recovery, finding resources that may not be available to the ordinary individual, all adds up to a quicker return to work, and more importantly, a thankful and more loyal colleague. To learn more about the Procor Employee Disaster Recovery program request our PDF at

Now is the time for action. Companies that have planned ahead are already responding; those that haven’t need to regroup quickly or risk significant losses.