Page 21 - BusinessWest September 30, 2024

common during chaotic situations.
Prepare your employees. Conduct regular training sessions
and emergency drills so employees know what to do in the event of a storm; provide emergency kits for employees that include first-aid supplies, flashlights, batteries, water, and non-perish- able food; and develop a remote work plan that allows employ- ees to work from home if the business premises are unsafe or inaccessible.
Review your insurance coverage. Verify that the business insurance includes coverage for natural disasters relevant to the area, such as floods, hurricanes, and tornadoes; purchase busi- ness-interruption insurance to cover lost income if the business is forced to close temporarily due to storm damage; and make sure any policy covers damage to or loss of inventory and equipment.
Stay informed. This may include subscribing to weather alerts from reliable sources such as the National Weather Service (NWS) and local news channels, and utilizing resources from gov- ernment agencies such as FEMA for the latest information and preparedness tips.
Conduct post-storm recovery. Conduct a thorough assess- ment of any damage to the property and assets, documenting the damage with photos and notes for insurance claims; implement a business-continuity plan to resume operations as quickly as pos- sible; and provide support and resources to employees affected by the storm to help them recover and return to work.
“Even if you haven’t been in contact with the agent or car- rier, first mitigate the losses,” Pearson added. “For instance, if a window is blown out, cover it up with plywood to prevent further damage.”
Bennett also emphasized basic preventive measures like win- terizing one’s home, checking the roof and gutters, making sure the pipes are insulated, sealing doors and windows, checking the heating system, having a generator on hand, and preparing an emergency kit that includes essential food, medications, blankets, flashlights, and batteries.
“Something I talk about almost every single day is taking pho- tos of your home — inside, outside, the garage, your possessions
— maybe once a year,” he added. “If there was a total loss, if you were asked if you know everything you have in your home, most people would say no.”
Pearson also stressed the importance of business-interruption coverage, in case the business needs to be relocated or business income needs to be replicated during a shutdown.
“It’s really important for the clients to sit down with us to make sure there is coverage available and that it’s adequate enough,” she said, adding that both home and business owners need to understand the value of totally replacing a structure. “Do you have a proper replacement cost on your home or business? Five years ago, if you bought a home for $500,000, it might cost $400,000 to $500,000 to replace it. Today, it might be $1 million.”
Weather or Not
When a storm is on the horizon, Pearson Wallace often issues notifications to clients about the timing and expected severity, and the agency encourages property owners to carefully document damage after the event to ease claims processing.
“We work through the mitigation of claims and losses. We have conference calls with the carrier and advocate on the client’s behalf,” Pearson said. “A lot of agencies don’t offer that advocacy opportunity. But working with claims representatives is a tough go, particularly when you’ve had a loss and you’re focused on the loss. Having a claims-process advocate is important.”
And will continue to be important, Bennett added.
“Most carriers at this point are preparing their rates for the future based on continued extreme weather events. Whether
it’s the West Coast, East Coast, Florida, regardless where you’re located, most carriers and most reinsurance companies are pre- paring for more extreme weather,” he told BusinessWest. “That’s a direct correlation to the change in weather patterns we’re see- ing.” BW
“Do you have
a proper replacement cost on your home or business? Five years ago, if you bought a home for $500,000,
it might cost $400,000 to $500,000 to replace it. Today, it might be $1 million.”
BETH PEARSON
BusinessWest << INSURANCE >> SEPTEMBER 30, 2024 21