No matter what one’s belief may be regarding the validity of climate change one thing is for certain, we are already feeling its impacts in various forms. Perhaps the most relevant and immediate impact of a warming planet has been the recent drop in precipitation levels in some regions of the globe.
After three consecutive years of below average rainfall, California is experiencing a dry season that some scientists say has been magnified by the recent changes in the global climate, which also include a rising sea-level, heavier than normal rainfalls, warm spells in normally cold areas, massive storm systems and either extreme heat or cold depending on global proximity and season. What we seem to be observing is an amplification of already occurring, extreme weather events. As the planet continues to warm via greenhouse gas/carbon emissions, we can only expect that storms will be stronger and more destructive, floods will be more widespread and common, and droughts will last longer and almost certainly, severely effect local communities water supplies, as well as business in general.
Each year thousands of property owners and managers file insurance claims for mold infestation, structural and interior damage or rot, and various other damages all of which stem from an initial source of water intrusion. In a perfect world all building envelopes would be water tight and structurally sound but in our reality this is seldom the case. When tracing water intrusion back to its source, most will encounter faulty design, construction defects or insufficient materials used, that in turn have compromised the buildings’ integrity and allowed water to invade and slowly work its damaging effects on its core structure. Storms and natural disasters only work to further exacerbate an existing water intrusion situation by pushing more water into your building via high winds and rising water levels. This type of situation only worsens damages sustained during a hurricane or natural disaster event, leading to higher costs for remediation and repairs. [Read more...]
A slow economy or sudden downturn in the markets can leave many commercial property owners and managers with the prospect of maintaining vacant buildings. Whether it’s a reduction in work force or tenants/businesses having to move to more affordable housing/retail space, many commercial property owners are faced with this current reality and should understand the risks involved and coverage available during periods of vacancy. [Read more...]
Reinsurance is insurance. It’s as simple as that. It is coverage that insurance companies (known as the ‘ceding’ party) buy from one or more re-insurers as a means of risk management. What is the risk? The risk is the amount of coverage/exposure that the insurance company holds in its underwritten policies. Theoretically, at any time an insurance company could be liable for any and all of the coverage enacted in its current policies. [Read more...]
When dealing with property insurance claims after a natural disaster, many policyholders encounter or are educated as to the reinstatement clause in their policy, and how it affects future claims arising from multiple events or disasters. In some property insurance policies there is a reinstatement clause that, simply put guarantees that once a claim (or loss) has been filed, the terms of coverage per the policy are reset to cover new, unrelated claims at the original full sum insured. However, many policies set a cap on payouts for the duration of the contract, so it is essential for property/business owners to be aware of what their policy will cover in the event of multiple losses during a coverage period. [Read more...]
Business or risk managers reviewing storm related insurance coverage often focus on wind and flooding as the key points of exposure. An often overlooked storm effect is hail, which can result in catastrophic damage to business property, landscaping, equipment and people.
“The National Weather Service reports roughly 1-, 000-12,000 hail storms in an average year which means your chances of experiencing hail damage may be far greater than you think”
Hail storms do wide spread damage on everything in their path. Hail destroys roofing, windows, gutters, decks, awnings, trees, plants and shrubs. Vehicles exposed to a heavy storm can be ruined from an aesthetic point of view and just about anything out in the elements cannot avoid the devastating effects of a strong hail storm. [Read more...]
It’s that time of year again for the Atlantic coast. The peak of hurricane season is here, and for some, that means keeping a close eye on the waves. Why waves you ask? Well, for one these aren’t just any waves, these are large tropical waves that get their start across the Atlantic off the western coast of Africa. Winds generated by a temperature contrast between the high heat over the Sahara desert and the cooler air over the forest and ocean along the Gulf of Guinea that set up a mid-level jet stream which pushes from east to west out across the ocean. These winds eventually contribute to these large, tropical waves which are known to be the impetus for 85% of all major Atlantic coast hurricanes. In fact, about 60% of all tropical storms and category 1,2 hurricanes get their start from these African easterly waves. Reports of robust tropic activities in the Caribbean and off the coast of Africa are already coming in as all eyes turn to these areas of origin, in anticipation of the next big storm.
- National Hurricane Center: Tropical wave likely to strengthen; second one near Africa (al.com)
- Tropical Storm Season: Updates From the Ocean (latinospost.com)
- Talkin’ Tropics – August 19-24: Quiet again (wwltv.com)
- Tropical wave expected to move into the southern Gulf over next few days (al.com)
- Newly minted Tropical Storm Erin is tracking through the east Atlantic Ocean (wtvr.com)
- TS Dorian loses force, becomes tropical wave (sacbee.com)
Concern over cyber threats to businesses is on the rise due to an ever changing technological atmosphere which has allowed for greater accessibility between businesses and their clients. With many businesses offering cloud based data centers which store important and often confidential documents or information, the threat of a data breach is a very real liability for any company. Many recently have ranked the risk of cyber-crimes or data breaches on par with such insurable risks as natural disasters, fire, and business interruptions. Perhaps partially due to recent media coverage of high profile data leaks and other security breaches, many companies are seeing data breach/loss as a major issue that can have a large impact when it comes to their business or property association. Reports are showing that companies have been known to only show interest in cyber liability insurance once a data breach has already occurred. However, going forward this type of risk needs to be taken into consideration in order to properly cover your business or property association. [Read more...]