Insurance & Business Continuity

Insurance & Business Continuity Tropical Storm Sandy 10/29/2012 $50 Billion in damages 72 deaths and 87 more deaths attributed to the storm afterward. Storm surges of 8 to 9 ft in NJ and up to 12ft on Long Island 95,000 flood damaged homes on LI

Tropical Storm sandy 52,000 flood damaged homes without Flood insurance coverage Approximately 400,000 claims to homes,businessowners and auto’s Over 130,000 cars were lost in NY alone and 250,000 total on the East Coast

Tropical Storm Sandy • Flooding in train tunnels,damage to bridges and roads • Wide spread power and communication outages • Gas shortages

Flood Coverage • Residential-Standard Policy • Building limit of $250,000 Maximum • Personal Property Limit $100,000 Maximum • Higher are available thru private and Excess markets

Flood Coverage • Coverage limitations in basements,living areas where all four walls are below the grade level. • Personal property,dry wall,paneling carpeting and other floor coverings are not covered below the grade level

Exclusions • Pools,spa,hots tubs located outside the dwelling • Lawns,trees,shrubs,plants,crops or animals • Underground wells,septic tanks and septic systems • Walks,driveways,decks,patios which are not part of the building structure

Exclusions • Fences,retaining walls,wharves,docks,bulkhead,peirs and seawalls • Loss of use

Commercial Flood Coverage • Commercial Flood-Standard Policy • Building limit of $500,000 Maximum • Business Personal Property limit of $250,000 Maximum • Higher limits available thru private and excess markets including business interruption

Commercial Flood • Coverage limitations in basements and areas where all four walls are below grade. • Business personal property,dry wall,paneling,carpeting and other floor coverings are not covered below grade level

Exclusions • Loss of revenue • Lawns,trees,shrubs,plants,crops or animals • Underground wells,spectic tanks and spetic systems • Walks,driveways,decks,patios which are not part of the building structure

Exclusions • Fences,retaining walls,wharves,docks,peirs and seawalls

30 day Waiting Period • Coverage for residential and commerical coverage is effective 30 days from the completion of the application and payment of premium • Exceptions only for bank and closings or refinancing

Homeowners Coverage • Know what your hurricane/wind deductible clause • Virtually all homeowners in the downstate area have a 2% to 5% of dwelling value hurricane or wind deductibles • Hurricane Deductibles applies based the category of storm[i.e 1,2,3,4,5]

Homeowners Coverage • Wind deductibles applies based purely on wind damage • The language on how either deductible applies is included in the policy and should be read.

Commercial Coverage • Many Commercial policies such as businessowners,package and stand alone property may have wind deductibles or named storm deductibles • Deductible is based on percentage of building or contents limit and language can be found in the policy

Business Interruption • Off Premises power failure • Many businessowners suffered loss of income due to lack of power and many claims were denied due to the power outages origin being away from their location.

Business Interruption • An example of the wording for Off premises power failure coverage is below • “we will pay for your loss and expense resulting from the necessary interruption of business caused by an accident to any transformer or electrical apparatus”

Business Interruption • 1]located on or within 500 feet of your premises • 2]owned by a public utility company;and • 3]used to supply electrical power to your premises

Business Interruption • Loss of income from dependent properties • Dependent property meaning property at premises located anywhere in the world which is operated by others whom you depend on to:

Business interruption • Deliver materials or services you or others • Accept your products or services • Manufacture products or deliver products to your customers • Attract customers to your business

Insurance & Business Continuity