Preparing for Disaster: A Twelve Step Program for the Practical Policyholder

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
of losses 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.