Best practices to secure cover for floods, other catastrophes

Businesses that were underinsured for Hurricane Irene should sit down with their brokers to review their losses and determine what coverage is available so they won't be caught off-guard the next time catastrophe strikes, experts say.

A typical hurricane insurance checklist recommends:

• Hire an outside modeling firm to perform an analysis of maximum probable losses based on various wind speeds and flood exposures, and secure appropriate coverage limits.

• Make sure deductibles apply to each named property vs. all covered properties.

• Review coverage limits for landscaping and debris removal to ensure they are adequate.

• Customize waiting periods for business interruption coverage to fit individual business needs and request that additional dollar deductibles be removed from the policy.

• Add coverage for claim preparation services, such as the cost of engineers and forensic accountants, to evaluate property damage and business income losses.

“Midsized businesses often err by trying to save money on premiums. But then they may be caught short when the time comes to file a claim and they discover they aren't covered or that the coverage is more restrictive than they actually thought,” said Robert Meyers, senior vp and property/casualty practice leader at USI Insurance Services L.L.C. in Briarcliff Manor, N.Y.