Insurance & Business Continuity

Tropical Storm Sandy 10/29/2012$50 Billion in damages72 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 Island95,000 flood damaged homes on LI

Tropical Storm sandy

52,000 flood damaged homes without Flood insurance coverageApproximately 400,000 claims to

homes,businessowners and auto’sOver 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