NATURAL DISASTERS the remainder of 2022 , largely due to predictions of above-average hurricane and wildfire seasons . In fact , researchers at Colorado State University predict that 20 named tropical storms will occur in 2022 , with 10 becoming hurricanes and five reaching major strength with sustained winds of more than 111 mph .
So what are you , a savvy business owner , to do to protect your organization ? First and foremost , you need to be educated . Getting advice and guidance from a knowledgeable insurance advisor is one of the prime resources for educating yourself , and it ’ s easily accessible . It is the insurance advisor ’ s job to help discover potential ways to mitigate loss in your business and help protect you from loss going forward . For example , the advisor can walk with you through your workplace to identify hazards and establish ways to lessen a loss should one occur . Together , looking for ways to improve housekeeping and maintenance , developing training on fire and on emergency safety and response are great starts . Most advisors will assist in developing a strategic disaster recovery plan that can help even with an unavoidable natural disaster to reduce the overall loss to the building and business as whole .
A RECOVERY PLAN IS ESSENTIAL TO GETTING YOUR BUSINESS BACK UP AND RUNNING .
After a full review of your entire workplace , your advisor will draw up a plan that will help you protect your business . This includes details about what kind of insurance you need .
TIPS FOR INSURANCE BUYERS :
• Determine whether you will need to adjust your business ’ s retentions or limits to manage costs .
• Gather as much data as possible regarding your existing risk management techniques . Be sure to work with your insurance professionals to present the loss control measures you have in place .
• Conduct a thorough inspection of your commercial property and the surrounding area for specific risk management concerns . Implement additional mitigation measures as needed .
• Develop a documented business continuity plan that will help your organization remain operational and minimize damages in the event of an interruption . Test this plan regularly with various possible scenarios . Make updates when necessary .
Budgeting is also a huge part of running a business . Currently , we are living in a hard market in which businesses are paying higher-than-average premiums . A hard market in the insurance industry is the upswing in a market cycle when premiums increase and capacity for most types of insurance decreases . This can be
2022 MIDYEAR MARKET OUTLOOK – COMMERCIAL PROPERTY INSURANCE caused by a number of factors including natural disaster , falling investment returns for insurers , increases in frequency or severity of losses , insurance company exits from the market , and regulatory intervention deemed to be against the interests of insurers . Understanding the current insurance market conditions and gaining insight from your insurance advisor on what to expect in the coming months and years could prove to have major impacts on your business budgeting .
If you have any questions on how to prepare your business for natural disaster and how to budget for high premiums , we are here to help . +
BY : ALISON WILLIAMS , BUSINESS RISK ADVISOR , GENERAL INSURANCE SERVICES
Alison Williams was born and raised in Chesterton . She attended Indiana University earning her Bachelor ’ s degree . Prior to joining GIS in 2016 Alison spent nearly 10 years in banking helping clients with banking , investments , business , and loans . Alison lives in Chesterton currently and has a son attending Indiana University Bloomington . She is an active volunteer in the community . She has been a member of the Chesterton-Porter Rotary club and a Duneland Chamber Ambassador since 2016 and a volunteer with Porter County Court Appointed Special Advocates ( CASA ) since 2015 . In Alison ’ s spare time she enjoys spending time with friends and family , beach days and musical performances .
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