The most salient disaster threats constantly change — as news of major data breaches and intensifying natural disasters constantly reminds us. Best practices for maximizing insurance recovery in the wake of disaster remain surprisingly constant,however. Searching its archives recently, Anderson Kill happened on this remarkably timeless 1993 disaster prep guide for policyholders by the late Eugene R. Anderson, founder of Anderson Kill and of insurance recovery as a distinct legal practice area. We invite you to take a short trip back in time and make sure you are ready to maximize insurance recovery when tomorrow’s disaster strikes. This article originally appeared in the October 1993 issue of Anderson Kill’s Policyholder Advisor newsletter.
When it comes to disasters, insurance companies are the masters of the game. While corporations are exposed to business-threatening disasters (e.g., earthquakes, hurricanes, liability for gradual or sudden environmental damage) about once every 30 years, major insurance companies face disaster claims every day. Policyholders stand little chance of obtaining the coverage they paid for, unless they prepare in advance of disaster to limit the scope oflosses and educate themselves in the rules of insurance coverage.
To prepare for disaster, policyholders must learn to think more like insurance companies. The following 12 steps may help policyholders plan for the inevitable disaster and minimize the impact of the event on their business.