Hurricane Sandy, a storm that forecasters say is on a scale with little precedent on the East Coast, is likely to trigger a significant volume of commercial property claims, according to Willis, a global insurance broker.
“Given the size of the storm its potential impact will likely be widespread. The entire insurance industry on high alert,” said Dave Passman, national director of National Property Claims, Willis Strategic Outcomes Practice.
Willis anticipates claim activity to be driven largely by windstorm, flood, service interruption and closure by order of civil authority. In addition to normal concerns about flooding, there is also serious concern about salt water flooding as a result of storm surge, as salt water accelerates corrosion and will add to the damage toll.
“So far there are only a handful of claims reported. This is expected as it could take 24-72 hours after the storm settles before it is safe for business owners to access property and assess damages,” Passman said.
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