Marsh Offers Pre- and Post-Loss Mitigation Tips for Businesses

With the National Oceanic and Atmospheric Administration (NOAA) predicting an “active to extremely active” hurricane season, insurance brokerage giant Marsh is recommending several pre and post-loss risk mitigation strategies to help buisnesses and risk managers weather the storm season.

NOAA is projecting a 70 percent probability of 14 to 23 named storms, eight to 14 hurricanes, and three to seven major hurricanes (category 3 or higher) in the Atlantic this hurricane season. NOAA’s forecast of an active season is consistent with other 2010 forecasts of hurricane activity.

According to the U.S. Census Bureau, approximately half of the U.S. population lives within 50 miles of a coastline. As the aggregation of population in coastal areas continues, and exposed property values and infrastructure increase, the total losses from hurricanes and other named storms will increase. At-risk industries include commercial real estate, hospitality, and public entities. The energy industry is also vulnerable, but has managed prior catastrophes, such as Hurricane Ike, relatively well.

Recent events — flooding in multiple U.S. states, earthquakes in Latin America and Asia, a volcanic eruption in Iceland, and the Gulf of Mexico oil release —are reminders that catastrophic events can have a compound effect on the property insurance market, impacting available capacity and pricing.

Specifically, Marsh recommends the following pre-loss and post-loss measures.

Pre-Loss Measures

Post-Loss Measures

For more information visit:

Source: Marsh