What Businesses Can Do to Prepare for Hurricane Season 2010

With hurricane season upon us once again, it is time for businesses to prepare for the devastating damages that can result from these natural disasters. Experts are currently predicting an extremely active season, with as many as 23 named storms and 3 to 7 reaching major hurricane force in the Atlantic Basin. If the 2010 activity reaches the upper end of predicted ranges, it will be one of the most active seasons on record.* As hurricanes become an increasing threat, education and early preparation have never been a higher priority.

Named storms can create numerous safety and asset protection risks-businesses of all sizes can be displaced, and in many cases, completely shut down. Businesses will then be faced with the challenge of dealing with the complexity of their property and business interruption insurance claims. However, there are actions businesses can take now to better prepare for hurricane season.

BDO Consulting's Glenn Pomerantz, National Director of Insurance Claim Services, and Robert Glasser, Managing Director of Insurance Claim Services, have worked with hundreds of businesses, from small start-ups to Fortune 500 companies, to help them minimize hardships and assist in accelerating the insurance recovery process. As hurricane season ramps up, Glenn and Bob can advise on the following issues relevant to disaster preparedness and recovery for businesses:

Disaster Preparedness

• Creating or updating disaster recovery plans
• Consider changes in locations, operations, strategy, logistics, employees, contracts and other significant impacts to the business’s risk profile
• Assessing whether accounting systems can adequately capture information to quantify and document losses, including:
• Lost orders, cancellations, decline in demand, extra expenses, property remediation and property repair
• Assessing whether employees have been adequately trained to capture relevant loss data and documentation
• Reviewing insurance policies for appropriate values and coverage, including:
• Deductibles and self-retentions
• Coverages such as flood, contingent business interruption, extended period of indemnity, civil authority, ingress/egress, ordinary payroll, preservation of property and claim preparation fees
• Back-ups of records and other critical information in advance of a hurricane.

Disaster Preparedness

• The insurance claims process – what to expect, who should be involved, duration, common roadblocks, cash advances, and settlement
• Documentation generally required from insurance carriers in connection with hurricane property and business interruption losses
• Re-creation of books and records under worst-case scenarios

If you would like to speak with Glenn or Bob please do not hesitate to contact Siobhan Ford at 212-584-5474.

*NOAA and http://www.noaanews.noaa.gov/stories2010/20100527_hurricaneoutlook.html

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