Building codes are only a starting point when putting up a new commercial structure that's intended to withstand an earthquake or other natural catastrophe.

Going beyond the local building code is the only to way to bridge the gap between the minimum acceptable standard and erecting a structure that is sufficiently tough when disaster strikes, experts say.

“The construction industry has developed better building practices over the years and it is possible to build beyond the building code,” said Don Neff, Orange County, California-based president and CEO of engineering risk management consulting firm La Jolla Pacific Ltd. “So when you think about it, building to code is just one step above breaking the law.”

Joe Stavish, senior vice president and director of property risk control engineering at Willis North America Inc. in New York, said building codes are designed solely to protect the life and safety of people within in a building, while building owners and risk managers have a wider range of concerns.

“The building code will help limit structural damage, but will not address all property damage,” Mr. Stavish said. Since building codes don't address issues such as business interruption, risk managers and the insurance industry need to take a more holistic view that includes being able to get into and out of a property as well as environmental concerns.

H. Kit Miyamoto, Davis, California-based CEO and president of structural engineering firm Miyamoto International, said the 2011 earthquakes in Christchurch, New Zealand, demonstrated the merits and limits of building codes. While the codes helped mitigate loss of life, thousands of buildings were lost, and business interruption losses were extensive.

“Less than 200 people died, so the buildings largely met the intention of the code,” Mr. Miyamoto said.

To help educate businesses about modern engineering standards and the inherent limitations of building codes, the Insurance Institute for Business & Home Safety created a “code plus” construction program, Fortified for Safer Business.

“Our point of view is that model building codes provide a baseline level for occupant safety and public welfare,” said Chuck Miccolis, Tampa, Florida-based senior engineering manager of commercial lines at the institute, which has a membership consisting of insurers, reinsurers, agents and brokers. “However, they don't always provide businesses with sufficient property protection.”

Mr. Miccolis said one benefit of the program has been to show that while building to a higher standard often is more expensive, it is not prohibitively so. For example, he said two large buildings built recently to the Fortified for Safer Business standard added about 1% to the cost.

“The cost to build to higher standards will be relative to the shape, size and location of the structure, but it can be relatively inexpensive,” he said.

Mr. Miyamoto said improvements begin at the design stage.

“There are high-tech dampers and isolation equipment you can use, but most mitigation is relatively straightforward, such as using ceiling braces,” he said. “So, it doesn't have to be expensive technology, but you do need engineers in the field to assess the risk.”

Mark Pizzi, Columbus, Ohio-based president and chief operating officer of Nationwide Mutual Insurance Co., said justifying the expense of building beyond code was easy when the insurer built new call centers in San Antonio, Texas, and Columbus to the Fortified standard.

The higher construction costs were offset by the reduced risk of its business being interrupted, and building to a more resilient standard helped underscore the insurer's mission and culture, he said.

“The numbers absolutely make sense,” Mr. Pizzi said. “If we had shut an office down instead of spending 1% or 2% more during construction, we would look stupid. You get that money back just from business continuity, but it goes beyond just the traditional return on investment.”

By setting a standard and putting “our money where our mouth is, we can speak much more forcefully about resilience to the business community,” Mr. Pizzi said. “It's hard as an insurance company to say that we need to build stronger homes and businesses and then not do it ourselves with our own buildings.”

Mr. Miyamoto agreed that for risk managers to mitigate risk properly, the insurance and engineering disciplines need to work together.

“You need a combination of risk transfer and risk reduction,” he said. “Insurance is a very important part of your overall solution.”