An industry survey of 150 risk professionals, who are in charge of risk analysis for major companies, gave some startling results when they were questioned about their emergency plans for catastrophic events.
One of the questions asked by the survey was if the company had run a simulation drill for a catastrophic loss that included an analysis of the effectiveness of the coverage by commercial insurance to mitigate some of this risk.
The surprising answers to this question show a very low amount of preparedness:
- Only about 25% had conducted such a simulation drill during the past two years.
- Only 11% reported that there was such a drill conducted during the last five years.
- Over two-thirds say they never conducted such a drill.
- About 28% reported that they were not sure if the company ever had such a drill.
Best Practices for a Commercial Insurance Review
Work with your agent at Dern & Company, serving the Milwaukee WI area, to analyze the commercial insurance for the business and to discuss the scenarios possible that may cause a catastrophic loss.
The considerations for adequate commercial insurance include:
- Review all policies before a loss.
- Understand the coverage that would be available for a loss.
- Analyze the detailed definitions in the policies in order to understand the exact terminology and what it means.
- Make a plan for documentation of the information needed before and subsequent to a loss.
- Upgrade and add to commercial insurance as necessary to make sure it is adequate.
Things to Look Out For
There are many things to consider with the help of your insurance agent that include total policy limits, sub-limits for specific items, deductibles and how they are applied, how property is valued, and how claims will be resolved if more than one policy applies to a loss.
In a catastrophic drill, imagine the worst-case scenarios. Get a comprehensive review of commercial insurance with the help of your agent at Dern & Company in Milwaukee, WI. Make sure the coverage is appropriate and adequate for the company’s needs before a loss occurs.