With two named storms in the Atlantic before the official start of Hurricane Season on June 1st, experts believe it will likely be a busy hurricane season. NOAA is predicting 13 – 19 named storms with 3 – 6 becoming major hurricanes.  

Preparing for a hurricane while in the midst of a pandemic sounds daunting and will add a level of complexity to a business’ current recovery strategy.  An organization must have the ability to quickly implement mitigation plans after a loss, with the goal being to resume normal business operations as quickly as possible. This process should be fluid and provide flexibility on identifying risks by location as well as to prepare response strategies, accordingly, that include organizing all critical resources, and restoration processes.  

  • What are the greatest risks by location, and what can be done to mitigate risk at each location? 
  • What are the business-continuity plans by location, including alternate sites?  If the printed continuity plan is in the office, plan to have a team member retrieve it, then scan to the executive team.  
  • In the event of loss, who is the team, internal and external, that will help the business recover at this location?  Evaluate this team based on pandemic risks and availability and make necessary changes.   
  • When damages need to be proven, how is key equipment accounted for and contents and keep track of warranty and maintenance records? 
  • Where can we manage key emergency documents for the location, including evacuation procedures?  How have evacuation procedures changed after the pandemic? 

Commercial property and business interruption insurance is a relationship business, but after a loss, it is the details that settle claims. Immediately after a loss, significant attention, leadership, and data analysis are required to fully document a claim. Policyholders have the responsibility to present their loss to their insurer(s) in order to be reimbursed based on the policy coverage. 

Often the policyholder is unfamiliar with the process and relies upon the insurer’s experts to determine the amount of the loss. This creates a conflict as the insurer’s expert’s role is to audit and review claims as presented. When a complex loss occurs, it is the responsibility of Risk Management as the Policyholder to lead the development and presentation of property damage and time element losses caused by the event. Keep in mind that a complex loss will be evaluated for insurance purposes or for a general audit, therefore it is essential to quickly establish a claim validation and presentation process to capture and document all loss- related costs. 

For more information, please see Procor’s Property Loss Mitigation Checklist for details in documenting your business insurance claim. 

The CDC has tips to help you and your family prepare for the hurricane and how to stay safe in the aftermath.  Please also view our Homeowners Property Loss Checklist to assist employees with their personal losses. 

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Please be advised that any and all information, comments, analysis, and/or recommendations set forth above relative to the possible impact of COVID-19 on potential insurance coverage or other policy implications are intended solely for informational purposes and should not be relied upon as legal advice. As an insurance broker, we have no authority to make coverage decisions as that ability rests solely with the issuing carrier. Therefore, all claims should be submitted to the carrier for evaluation. The positions expressed herein are opinions only and are not to be construed as any form of guarantee or warrantee. Finally, given the extremely dynamic and rapidly evolving COVID-19 situation, comments above do not take into account any applicable pending or future legislation introduced with the intent to override, alter or amend current policy language.