Business Interruption: Once Damaged, Twice Destroyed

'Allianz recommends every business located in a hurricane prone area have a comprehensive, written emergency response plan that is reviewed and tested annually,' says Higgins. 'A good plan will enable the business to quickly implement measures after the disaster to restart production as quickly as possible and to limit business interruption losses.'

Whether for a business or a home, hurricane planning involves understanding the susceptibility of property to high winds, storm surge and inland flooding. Preparing for flooding can be very different from preparing for high winds. For example, the majority of preparations for Hurricane Sandy were based on a high wind event, leaving many people and businesses unprepared for the extreme flooding that occurred.

Higgins also recommends that contingency plans are reviewed and updated regularly as emerging risks become evident. A well-developed contingency plan provides businesses with the tools to get back up and running as quickly as possible. Even if a facility sustains minimal damage from a hurricane, the operations may be interrupted by power outages and accessibility issues.

'People should also read and understand their insurance policy,' says Higgins. 'It is important to know what is covered, where there may be gaps and how they can be reasonably plugged.'

Allianz is already sending claims adjusters to Raleigh and Columbia in South Carolina to support customers with insurance claims once the storm passes.