hurricane preparedness white paper

Maran Corporate Risk Associates, Inc. Phone: 631-283-8000 Email: [email protected]

www.mcrainsurance.com

Hurricane Preparedness

Included are a series of resources for you to use to ensure you, your

family and your business are safe in the event of a hurricane.

For more information visit us online at www.mcrainsurance.com.



Table of Contents Click on the text below to link to the page you would like to view Are You Prepared? Safety tips on what to do before, during and after a storm. Hurricane Preparedness for You and Your Family: Disaster Supply Kits/Family Disaster Plan Checklist Business Contingency Planning Addressing Hazards Can Your Business Survive a Hurricane? Do you have a plan and adequate insurance coverage? Are you covered in case of Business Interruption? Playing it Safe: Tips for your Employees on safe working conditions to decrease injury in the event of a hurricane. Emergency Hurricane Preparedness Checklist for Business Owners and Operators



Are You Prepared?

Safety Tips: What to do before, during and after a storm.

Here you will have access to information on Hurricane Hazards and creating your own Family Disaster Plan and a Disaster Supply Kit. Get tips,

checklist and more in this packet of information.

This flyer is for informational purposes only.

Photography © 2000-2004 Getty Images, Inc. All rights reserved.

Preparing for a Hurricane What to do before, during and after a storm Hurricane season lasts from June

through November, when storms

with heavy rains and catastrophic

winds can severely damage or

destroy homes in low-lying

coastal areas.

During Hurricane Season: • Plan evacuation routes and

designate a “post-disaster contact” that family members know to call after a hurricane.

• Stock up on items such as a week’s supply of bottled water and canned goods, along with a manual can/bottle opener, flashlight, battery-operated radio or television, nails, tarps and plywood.

• Keep an up-to-date log (including photos/videotape) of your possessions; review insurance policy coverage annually.

• Keep trees and shrubs trimmed to minimize potential damage.

When a Hurricane Threatens: • Refill prescriptions, fill up

your car’s gas tank, and withdraw a week’s worth of cash, as power outages may temporarily interrupt services.

• Store valuable papers and items in waterproof bags.

• Cover windows and secure any outdoor items.

• If you live in a trailer home and/or are told to evacuate, do so immediately.

During a Hurricane: • Tune into a battery-operated

radio or TV and follow local authorities’ instructions.

• Seek shelter in an interior room away from windows, such as a closet. Don’t assume the hurricane is over when the wind subsides. The calm may be the eye of the storm, and the worst part may still be on the way.

• If the electricity goes out, use a flashlight only (not candles).

After a Hurricane: • Stay inside until an “all-clear”

is issued. If you have evacuated, don’t return until

the area is re-opened.

• When inspecting your home, wear sturdy shoes and clothing for protection. People are often hurt after a hurricane, rather than during it.

• Allow only those trained to turn off damaged utilities and appliances.

• Use only bottled water until tap water is determined safe, and do not eat foods stored in the refrigerator if the power was out.

• Use the phone for emergencies only.

Safety and health tips for your work, home and life—brought to you by the insurance and safety specialists at Maran Corporate Risk Associates.

Simplifying the claims process... [1] Contact your agent promptly to report damages. Be patient, as delays are likely. [2] Do not alter the damaged property unless attempting to prevent further damage. [3] Keep receipts for ALL costs incurred, including temporary housing expenses.



Hurricane Preparedness

For You and Your Family

Steps to take to protect your home and your family. A guide to creating a family disaster plan and a disaster supply kit. Make sure you’re prepared!

Take Action

All of the UNDERLINED items below are links to more information. Just click on the link to read more.

Are You Prepared?

Being prepared for a hurricane is one of the most important steps you can take to ensure the safety of your loved ones. If you are hurricane aware you will be able to answer these three questions:

1. What are the Hurricane Hazards? a. Storm Surge, Marine Hazards, Tornadoes, High Winds, and

Inland Flooding 2. What does this mean to you?

a. Do you live in a Surge Zone? One a Barrier Island? In an area prone to flooding? In a strong and sturdy home?

3. What actions should you take to be prepared? a. Family Disaster Plan, Disaster Supply Kit, Have a place to go,

and Stay Aware

3 Steps Everyone Should Take Before Hurricane Season Starts

Step One: Before

Before Hurricane Season Starts You Should

Assemble your Disaster Supply Kit: These items are often scattered around your home and simply need to be brought together into one location.

Write out your Family Disaster Plan. Discuss the possible hazards with your family. Determine if you are in an evacuation area. Identify an out-of-town family contact.

Step Two: Watch

When a Hurricane Watch is issued you should:

Check your Disaster Supply Kit. Make sure nothing is missing. Determine if there is anything you need to supplement your kit. Replenish your water

Activate your Family Disaster Plan. Protective measures should be initiated, especially those actions that require extra time (for example, securing a boat or leaving a barrier island).

Step 3: Warning

When a Hurricane Warning is issued you should:

Ready your Disaster Supply Kit for use. If you need to evacuate, you should bring your Supply Kit with you. Use your Family Disaster Plan. Your family should be in the process of completing protective actions and deciding the safest location to be during the storm.

Here is a checklist for you to use to create a Disaster Supply Kit:

Water - at least 1 gallon daily per person for 3 to 7 days

Food - at least enough for 3 to 7 days — non-perishable packaged

or canned food / juices — foods for infants or the elderly — snack

foods — non-electric can opener — cooking tools / fuel — paper

plates / plastic utensils

Blankets / Pillows, etc.

Clothing - seasonal / rain gear/ sturdy shoes

First Aid Kit / Medicines / Prescription Drugs

Special Items - for babies and the elderly

Toiletries / Hygiene items / Moisture wipes

Flashlight / Batteries

Radio - Battery operated and NOAA weather radio

Telephones - Fully charged cell phone with extra battery and a

traditional (not cordless) telephone set

Cash (with some small bills) and Credit Cards - Banks and ATMs

may not be available for extended periods

Keys

Toys, Books and Games

Important documents - in a waterproof container or watertight

resealable plastic bag — insurance, medical records, bank account

numbers, Social Security card, etc.

Tools - keep a set with you during the storm

Vehicle fuel tanks filled

Pet care items — proper identification / immunization records /

medications — ample supply of food and water — a carrier or

cage — muzzle and leash

Here are some guidelines for creating a Family Disaster Plan.

Discuss the type of hazards that could affect your family. Know

your home's vulnerability to storm surge, flooding and wind.

Locate a safe room or the safest areas in your home for each

hurricane hazard. In certain circumstances the safest areas may

not be your home but within your community.

Determine escape routes from your home and places to meet.

These should be measured in tens of miles rather than hundreds of

miles.

Have an out-of-state friend as a family contact, so all your

family members have a single point of contact.

Make a plan now for what to do with your pets if you need to

evacuate.

Post emergency telephone numbers by your phones and make

sure your children know how and when to call 911.

Check your insurance coverage - flood damage is not usually

covered by homeowners insurance.

Stock non-perishable emergency supplies and a Disaster Supply

Kit.

Use a NOAA weather radio. Remember to replace its battery every

6 months, as you do with your smoke detectors.

Take First Aid, CPR and disaster preparedness classes.



Business Contingency Planning

Addressing Hazards

When developing your Business Contingency Plan, you will need to identify and plan for any unique hazards to your business and

incorporate them into the Plan. To assist you in establishing procedures for hazards, utilize this reference to determine specific considerations for

tornado, fire, earthquake, hurricane, hazardous material, flood, and severe winter storm hazards.

Source: FEMA. This flyer is for informational purposes only and is not intended as professional advice.

BUSINESS CONTINGENCY PLANNING: ADDRESSING HAZARDS

When developing your Business Contingency Plan, you will need to identify and plan for any unique hazards to your business and incorporate them into the Plan. To assist you in establishing procedures for hazards, utilize this reference to determine specific considerations for tornado, fire, earthquake, hurricane, hazardous material, flood, and severe winter storm hazards. TORNADO HAZARDS A tornado is an incredibly violent local storm that extends to the ground with whirling winds that can reach 300 mph. Spawned from powerful thunderstorms, tornadoes can uproot trees and buildings and turn harmless objects into deadly missiles in a matter of seconds. Damage paths can be in excess of one mile wide and 50 miles long. Tornadoes can occur in any state but occur more frequently in the Midwest, Southeast and Southwest. They occur with little or no warning. Planning considerations for tornadoes:

□ Ask your local emergency management office about the community's tornado warning system.

□ Purchase a NOAA Weather Radio with a warning alarm tone and battery backup. Listen for tornado watches and warnings:

- A Tornado Watch means tornadoes are likely. Be ready to take shelter. Stay tuned to radio and television stations for additional information.

- A Tornado Warning means a tornado has been sighted in the area or is indicated by radar. Take shelter immediately.

□ Establish procedures to inform personnel when tornado warnings are posted. Consider the need for spotters to be responsible for looking out for approaching storms.

□ Work with a structural engineer or architect to designate shelter areas in your facility. Ask your local emergency management office or National Weather Service office for guidance.

□ The best protection in a tornado is usually an underground area. If an underground area is not available, consider:

1. Small interior rooms on the lowest floor and without windows 2. Hallways on the lowest floor away from doors and windows 3. Rooms constructed with reinforced concrete, brick or block with no

windows and a heavy concrete floor or roof system overhead 4. Protected areas away from doors and windows

Note: Auditoriums, cafeterias and gymnasiums that are covered with a flat, wide-span roof are not considered safe.

□ Make plans for evacuating personnel away from lightweight modular offices or mobile home-size buildings. These structures offer no protection from tornadoes.

□ Conduct scheduled tornado drills to test your plan.

FIRE HAZARDS Fire is the most common of all the hazards. Every year fires cause thousands of deaths and injuries and billions of dollars in property damage. Planning considerations for fire hazards:

□ Meet with the fire department to talk about the community's fire response capabilities. Talk about your operations. Identify processes and materials that could cause or fuel a fire, or contaminate the environment in a fire.

□ Have your facility inspected for fire hazards. Ask about fire codes and regulations.

□ Ask your insurance carrier to recommend fire prevention and protection measures. Your carrier may also offer training.

□

Distribute fire safety information to employees: how to prevent fires in the workplace, how to contain a fire, how to evacuate the facility, where to report a fire.

□ Evaluate employee access to and availability of healthcare services during a pandemic, and improve services as needed.

□ Instruct personnel to use the stairs -- not elevators -- in a fire. Instruct them to crawl on their hands and knees when escaping a hot or smoke-filled area.

EARTHQUAKE HAZARDS Earthquakes occur most frequently west of the Rocky Mountains, although historically the most violent earthquakes have occurred in the central United States. Earthquakes occur suddenly and without warning. Earthquakes can seriously damage buildings and their contents; disrupt gas, electric and telephone services; and trigger landslides, avalanches, flash floods, fires and huge ocean waves called tsunamis. Aftershocks can occur for weeks following an earthquake. In many buildings, the greatest danger to people in an earthquake is when equipment and non-structural elements such as ceilings, partitions, windows and lighting fixtures shake loose. Planning considerations for earthquakes:

□

Assess your facility's vulnerability to earthquakes. Ask local government agencies for seismic information for your area.

□ Have your facility inspected by a structural engineer. Develop and prioritize strengthening measures. These may include: (1) Adding steel bracing to frames (2) Adding sheer walls to frames (3) Strengthening columns and building foundations (4) Replacing unreinforced brick filler walls

□ Follow safety codes when constructing a facility or making major renovations.

□ Inspect non-structural systems such as air conditioning, communications and pollution control systems. Assess the potential for damage. Prioritize measures to prevent damages.

□ Inspect your facility for any item that could fall, spill, break or move during an earthquake. Take steps to reduce these hazards.

□ Move large and heavy objects to lower shelves or the floor. Hang heavy items away from where people work.

□ Secure shelves, filing cabinets, tall furniture, desktop equipment, computers, printers, copiers and light fixtures.

□ Secure fixed equipment and heavy machinery to the floor. Larger equipment can be placed on casters and attached to tethers which attach to the wall.

□ Add bracing to suspended ceilings, if necessary.

□ Install safety glass where appropriate.

□ Secure large utility and process piping.

□ Keep copies of design drawings of the facility to be used in assessing the facility's safety after an earthquake.

□ Review processes for handling and storing hazardous materials. Have incompatible chemicals stored separately.

□ Ask your insurance carrier about earthquake insurance and mitigation techniques.

□ Establish procedures to determine whether an evacuation is necessary after an earthquake.

□ Designate areas in the facility away from exterior walls and windows where occupants should gather after an earthquake if an evacuation is not necessary.

□ Conduct earthquake drills. Provide personnel with the following safety information:

- In an earthquake, if indoors, stay there. Take cover under a sturdy piece of furniture or counter, or brace yourself against an inside wall. Protect your head and neck.

- If outdoors, move into the open, away from buildings, street lights and utility wires. - Use stairways to leave the building if it is determined that a building evacuation is

necessary. - After an earthquake, stay away from windows, skylights and items that could fall. Do

not use the elevators.

HURRICANE HAZARDS Hurricanes are severe tropical storms with sustained winds of 74 miles per hour or greater. Hurricane winds can reach 160 miles per hour and extend inland for hundreds of miles. Hurricanes bring torrential rains and a storm surge of ocean water that crashes into land as the storm approaches. Hurricanes also spawn tornadoes. Hurricane advisories are issued by the National Weather Service as soon as a hurricane appears to be a threat. The hurricane season lasts from June through November. Planning considerations for hurricanes:

□ Ask your local emergency management office about community evacuation plans.

□ Establish facility shutdown procedures. Establish warning and evacuation procedures. Make plans for assisting employees who may need transportation.

□ Make plans for communicating with employees' families before and after a hurricane.

□ Purchase a NOAA Weather Radio with a warning alarm tone and battery backup.

□ Listen for hurricane watches and warnings:

Hurricane Watch -- A hurricane is possible within 24 to 36 hours. Stay tuned for additional advisories. Tune to local radio and television stations for additional information. An evacuation may be necessary. Hurricane Warning -- A hurricane will hit land within 24 hours. Take precautions at once. If advised, evacuate immediately.

□ Survey your facility. Make plans to protect outside equipment and structures

□ Make plans to protect windows. Permanent storm shutters offer the best protection.

□ Covering windows with 5/8' marine plywood is a second option.

□ Consider the need for backup systems: - Portable pumps to remove flood water - Alternate power sources such as generators or gasoline-powered

pumps - Battery-powered emergency lighting - Prepare to move records, computers and other items within your

facility or to another location. FLOOD/FLASH FLOOD HAZARDS Floods are the most common and widespread of all natural disasters. Most communities in the United States can experience some degree of flooding after spring rains, heavy thunderstorms or winter snow thaws. Most floods develop slowly over a period of days. Flash floods, however, are like walls of water that develop in a matter of minutes. Flash floods can be caused by intense storms or dam failure. Planning considerations for floods/flash floods:

□ Ask your local emergency management office whether your facility is located in a flood plain. Learn the history of flooding in your area. Learn the elevation of your facility in relation to streams, rivers and dams.

□ Review the community's emergency plan. Learn the community's evacuation routes. Know where to find higher ground in case of a flood.

□ Establish warning and evacuation procedures for the facility. Make plans for assisting employees who may need transportation.

□ Inspect areas in your facility subject to flooding. Identify records and equipment that can be moved to a higher location. Make plans to move records and equipment in case of flood.

□ Purchase a NOAA Weather Radio with a warning alarm tone and battery backup.

□ Listen for flood watches and warnings. Flood Watch -- Flooding is possible. Stay tuned to NOAA radio. Be prepared to evacuate. Tune to local radio and television stations for additional information.

Flood Warning -- Flooding is already occurring or will occur soon. Take precautions at once. Be prepared to go to higher ground. If advised, evacuate immediately.

□ Ask MCRA for information about flood insurance. Regular property and casualty insurance does not cover flooding.

□ Consider the feasibility of floodproofing your facility. There are three basic methods. 1. Permanent floodproofing measures are taken before a flood occurs and require no human

intervention when flood waters rise. They include: - Filling windows, doors or other openings with water-resistant materials such as

concrete blocks or bricks. This approach assumes the structure is strong enough to withstand flood waters.

- Installing check valves to prevent water from entering where utility and sewer lines enter the facility.

- Reinforcing walls to resist water pressure. Sealing walls to prevent or reduce seepage.

- Building watertight walls around equipment or work areas within the facility that are particularly susceptible to flood damage.

- Constructing floodwalls or levees outside the facility to keep flood waters away. - Elevating the facility on walls, columns or compacted fill. This approach is most

applicable to new construction, though many types of buildings can be elevated.

2. Contingent floodproofing measures are also taken before a flood but require some additional action when flooding occurs. These measures include:

- Installing watertight barriers called flood shields to prevent the passage of water

through doors, windows, ventilation shafts or other openings - Installing permanent watertight doors - Constructing movable floodwalls - Installing permanent pumps to remove flood waters

3. Emergency floodproofing measures are generally less expensive than those listed above,

though they require substantial advance warning and do not satisfy the minimum requirements for watertight floodproofing as set forth by the National Flood Insurance Program (NFIP). They include:

- Building walls with sandbags - Constructing a double row of walls with boards and posts to create a "crib," then

filling the crib with soil - Constructing a single wall by stacking small beams or planks on top of each other - Participate in community flood control projects. - Consider the need for backup systems:

(1) Portable pumps to remove flood water (2) Alternate power sources such as generators or gasoline- powered pumps (3) Battery-powered emergency lighting

SEVERE WINTER STORM HAZARDS Severe winter storms bring heavy snow, ice, strong winds and freezing rain. Winter storms can prevent employees and customers from reaching the facility, leading to a temporary shutdown until roads are cleared. Heavy snow and ice can also cause structural damage and power outages. Planning considerations for severe winter storms:

□ Listen to NOAA Weather Radio and local radio and television stations for weather information: Winter Storm Watch -- Severe winter weather is possible. Winter Storm Warning -- Severe winter weather is expected.

Blizzard Warning -- Severe winter weather with sustained winds of at least 35 mph is expected. Traveler's Advisory -- Severe winter conditions may make driving difficult or dangerous.

□ Collaborate with federal, state, and local public health agencies and/or emergency responders to establish procedures for facility shutdown and early release of employees.

□ Store food, water, blankets, battery-powered radios with extra batteries and other emergency supplies for employees who become stranded at the facility.

□ Provide a backup power source for critical operations.

□ Arrange for snow and ice removal from parking lots, walkways, loading docks, etc.

HAZARDOUS MATERIALS HAZARDS Hazardous materials are substances that are flammable or combustible, explosive, toxic, noxious, corrosive, oxidizable, an irritant or radioactive. A hazardous material spill or release can pose a risk to life, health or property. An incident can result in the evacuation of a few people, a section of a facility or an entire neighborhood. There are a number of Federal laws that regulate hazardous materials, including: the Superfund Amendments and Reauthorization Act of 1986 (SARA), the Resource Conservation and Recovery Act of 1976 (RCRA), the Hazardous Materials Transportation Act (HMTA), the Occupational Safety and Health Act (OSHA), the Toxic Substances Control Act (TSCA) and the Clean Air Act. Title III of SARA regulates the packaging, labeling, handling, storage and transportation of hazardous materials. The law requires facilities to furnish information about the quantities and health effects of materials used at the facility, and to promptly notify local and State officials whenever a significant release of hazardous materials occurs. In addition to on-site hazards, you should be aware of the potential for an off-site incident affecting your operations. You should also be aware of hazardous materials used in facility processes and in the construction of the physical plant. Detailed definitions as well as lists of hazardous materials can be obtained from the Environmental Protection Agency (EPA) and the Occupational Safety and Health Administration (OSHA). Planning considerations for hazardous material hazards:

□ Identify and label all hazardous materials stored, handled, produced and disposed of by your facility. Follow government regulations that apply to your facility. Obtain material safety data sheets (MSDS) for all hazardous materials at your location.

□ Ask the local fire department for assistance in developing appropriate response procedures.

□ Train employees to recognize and report hazardous material spills and releases. Train employees in proper handling and storage.

□ Establish a hazardous material response plan: (1) Establish procedures to notify management and emergency response organizations of an incident. (2) Establish procedures to warn employees of an incident. (3) Establish evacuation procedures.

□ Depending on your operations, organize and train an emergency response team to confine and control hazardous material spills in accordance with applicable regulations.

□ Identify other facilities in your area that use hazardous materials. Determine whether an incident could affect your facility.

□ Identify highways, railroads and waterways near your facility used for the transportation of hazardous materials. Determine how a transportation accident near your facility could affect your operations.

TECHNICAL EMERGENCY HAZARDS Technological emergencies include any interruption or loss of a utility service, power source, life support system, information system or equipment needed to keep the business in operation. Planning considerations for technical emergencies:

□ Identify all critical operations, including: - Utilities including electric power, gas, water, hydraulics, compressed air, municipal and

internal sewer systems, wastewater treatment services - Security and alarm systems, elevators, lighting, life support systems, heating, ventilation

and air conditioning systems, electrical distribution system. - Manufacturing equipment, pollution control equipment - Communication systems, both data and voice computer networks - Transportation systems including air, highway, railroad and waterway

□ Determine the impact of service disruption.

□ Ensure that key safety and maintenance personnel are thoroughly familiar with all building systems.

□ Establish preventive maintenance schedules for all systems and equipment. Updated: (effective date)

□ Establish procedures for restoring systems. Determine need for backup systems.



Can Your Business Survive a Hurricane?

Advance Planning and Proper Insurance Essential to Recovery

A disaster plan and adequate insurance are keys to recovery.

Maran Corporate Risk Associates, Inc. www.mcrainsurance.com

Can Your Business Survive a Hurricane? Advance Planning and Proper Insurance Essential to Recovery

Of all businesses that close down following a disaster, more than 25

percent never open their doors again. While there’s no way to lower the

risk of a natural disaster from hurricanes, there are critical measures

that can be taken to protect your company’s bottom line from nature’s

fury. A disaster plan and adequate insurance are keys to recovery.

Develop a Disaster Recovery Plan

No matter how small or large a business, a business impact analysis should

be developed to identify what an operation must do to protect itself in the

face of a natural disaster. Large corporations often hire risk managers to

handle this task and some companies hire consultants with expertise in

disaster planning and recovery to assist them with their plans. But small

businesses can do the analysis and planning on their own.

Your business plan should consider the following:

• Set up an emergency response plan and train employees how to carry it out. Make sure employees know whom to notify about the disaster and what measures to take to preserve life and limit property losses.

• Write out each step of the plan and

assign responsibilities to employees in clear and simple language. Practice the procedures set out in the emergency response plan with regular, scheduled drills.

• Consider the things you may need

initially during the emergency. Do you need a back-up source of power? Do you have a back-up communications system?

• Decide on a communications strategy to

prevent loss of customers. Post notices outside your premises; contact clients by phone, e-mail or regular mail; place a notice in local newspapers.

• Protect employees and customers

from injury on the premises. Consider the possible impact a disaster will have on your employees’ ability to return to work and how customers can return to your shop or receive goods or services.

• Compile a list of important phone

numbers and addresses. Make sure you can get in touch with key people after the disaster. The list should include local and state emergency management agencies, major clients, contractors, suppliers, realtors, financial institutions, insurance agents and insurance company claim representatives.

• Keep duplicate records. Back-up

computerized data files regularly and store them off-premises. Keep copies of important records and documents in a safe deposit box and make sure they’re up to date.

May 2010 Risk Insights

• Even if your business escapes a disaster, there is

still a risk that the business could suffer significant losses due to the inability of suppliers to deliver goods or services or a reduction in customers. Businesses should communicate with their suppliers and markets (especially if they are selling to a business as a supplier) about their disaster preparedness and recovery plans, so that everyone is prepared.

• Protect your building. If you own the structure that

houses your business, integrate disaster protection for the building as well as the contents into your plan. Consider the financial impact if your business shuts down as a result of a disaster. What would be the impact for a day, a week or an entire revenue period?

• Identify critical business activities and the

resources needed to support them. If you cannot afford to shut down your operations, even temporarily, determine what you require to run the business at another location.

• Find alternative facilities, equipment and supplies,

and locate qualified contractors. Consider a reciprocity agreement with another business. Try to get an advance commitment from at least one contractor to respond to your needs.

• Protect computer systems and data. Data storage

firms offer offsite backups of computer data that can be updated regularly via high-speed modem or through the Internet.

Source: Insurance Information Institute. Reprinted with permission.

Review your insurance plan

Make sure you have sufficient coverage to pay for the

indirect costs of the disaster – the disruption to your

business – as well as the cost of repair or rebuilding.

Most policies do not cover flood or earthquake damage

and you may need to buy separate insurance for these

perils. Be sure you understand your policy deductibles

and limits.

For a business, the costs of a disaster can extend

beyond the physical damage to the premises,

equipment, furniture and other business property.

There’s the potential loss of income while the premises

are unusable. Your disaster recovery should include a

detailed review of your insurance policies to ensure there

are no gaps in coverage. This includes property

insurance, business interruption insurance and extra

expense insurance. Even if your basic policy covers

expenses and loss of net business income, it may not

cover income interruptions due to damage that occurs

away from your premises, such as to your key customer

or supplier or to your utility company. You can generally

buy this additional coverage and add it to your existing

policy.

Most business owners are complacent about natural

disasters until it happens to them. It’s only when the

owner has gone through a disaster that a disaster plan,

including purchasing the proper insurance, is usually

considered.

Don’t let a lack of insurance coverage or poor planning

destroy your business. Contact MCRA to learn

more about disaster planning and to determine your best

insurance coverage needs.

This Maran Corporate Risk Associates, Inc. Risk Insights is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.



Are You Covered in Case of Business

Interruption?

Make sure you are covered if a hurricane or other natural disaster forces you to close your doors.

Maran Corporate Risk Associates, Inc. www.mcrainsurance.com

Coverage Insights

Are You Covered in Case of a Business Interruption? If a fire causes your business to be temporarily unusable, what would you do next? Ideally, you would move to a temporary location while your permanent place of business is being repaired. Yet, traditional Property Insurance does not cover this move or a loss of income when a business must temporarily close. With Business Interruption Insurance, also referred to as Business Income coverage, this setback can be minimized by simply adding this coverage to your Property Insurance policy. What is included in a Business Interruption Insurance Policy?

- Compensation for lost income if your business has to vacate its premises as a result of disaster-related damage covered under a Property Insurance policy.

- Covers the profits that would have been earned based on previous financial records, had the disaster not occurred.

- Covers operating expenses, such as utilities, that must be paid even though business temporarily ceased.

- Covers expenses of operating in a temporary location while repairs to the permanent location are completed.

Considerations for Business Interruption Insurance

- Business Interruption Insurance cannot be purchased on its own; it must be added to a Property Insurance policy or included in a Business Owner’s Insurance policy.

- Policy limits should be sufficient enough to cover a large amount of time to rebuild the permanent business space. Generally there is a 48-hour waiting period before the coverage will apply.

- Price of coverage depends on the risk of disaster to the premises. This may depend on the business location, nature of the business and how easily the business could function at an alternate location on a temporary basis.

What is Extra Expense Insurance? Extra Expense Insurance is also a viable inclusion to cover the amount needed to avoid having to shut down a business while the permanent location is being repaired. This coverage reimburses for expenses that arise on top of normal business expenses and will be paid to decrease business interruption costs. Depending on the disaster, Extra Expense Insurance may be sufficient enough to provide financial relief without having to utilize Business Interruption Insurance. Insurance experts estimate that Business Interruption Insurance is one of the most, if not the most, valuable coverage available. Yet, it is often overlooked by business owners as a necessity. Since Property Insurance only covers the cost of physical loss or damage and contents of a business in the event of a disaster, Business Interruption coverage is invaluable in covering the loss of income while the permanent business location is being repaired. Consult MCRA INsurance today to learn more about all of our business continuity resources.

This Coverage Insights is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.

Photography © Outdoor Office V154 Getty Images, Inc. All rights reserved.



Playing it Safe

Here is an employee newsletter to help keep working conditions safe on the jobsite. Good housekeeping can reduce injury risks in the event of a

hurricane or other disaster.

Workplace safety tips brought to you by the insurance specialists at Maran Corporate Risk Associates, Inc.

TIME TO TIDY UP! Housekeeping Practices for Jobsites

When you think of housekeeping, do vacuums, toilet brushes and bleach come to mind? These items are great for tidying up at home, but work areas require different housekeeping practices that can prevent accidents. In fact, good housekeeping is one of the most effective ways of reducing your risk of injury or illness on the job.

Consider these housekeeping tips to keep working conditions safe: Store materials and tools in a specific location,

away from main foot traffic. Dispose of combustible materials properly so

that you do not start a fire while cleaning up. Pick up stray items to prevent tripping and

accidental falling hazards. Remove or bend over protruding nails on

scrap lumber to thwart puncture wounds. Safely store tools with sharp edges pointing

downward. Continuously clean your space throughout the

day versus waiting until the end of the day to tidy up. You will increase your risk of injury as the day carries on.

Encourage your coworkers to

participate in housekeeping efforts so everyone remains safe on the job!

Know How to Take Cover Recommendations for

Inclement Weather

Nasty weather patterns can lead to your safety being jeopardized. When inclement weather is approaching, keep your ear to the grindstone by monitoring radio and television advisories from the National Weather Service. As you get word of a storm’s progress, replenish and/or gather any necessary supplies and equipment to keep you safe. If you receive notice that a weather warning has been given for your area, remain calm and alert other coworkers. If you are working indoors during inclement weather, go to the lowest level in an interior room and lie flat on the ground with your arms over your head. Avoid windows and exterior doors and walls. If you are outdoors, head to the nearest ditch, lie flat and cover your head with your arms. A few other safety reminders: Hurricane season runs from June through

November. A hurricane watch means that the storm may hit within 24 hours, whereas a warning means that it is expected to strike within 24 hours.

Tornadoes are more prevalent in spring and summer and tend to occur at the end of a nasty thunderstorm.

On March 18, 1925, the United States suffered its worst tornado tragedy in the tri-state area of Missouri, Illinois and Indiana. Several twisters killed 747 people and injured another 2,027. Of the victims, the largest tornado killed 695 people, which is the greatest single tornado death-toll on record.

Maran Corporate Risk Associates, Inc.



Emergency Hurricane Preparedness Checklist for Business Owners & Operators

Hurricane Preparation Suggestions and a Business Checklist of Emergency Supplies.

For: Date: May 21, 2010

Conducted by:

According to the American Red Cross, almost 40 percent of all small businesses affected by a major disaster, such as a tornado, flood, earthquake or hurricane, do not reopen their doors because they were unprepared for the disaster. Therefore, it is necessary for business owners and managers to consider the fact that a natural disaster is possible. Ask yourself these questions: How could I continue to conduct business if the city (or even just the streets near my building) are closed off? How could I serve my customers’ needs if my facility needed to close for several months? Could my business survive if it was closed down for several weeks or months? Even if a hurricane does not put your company out of business, you may not be able to make contact with your customers or obtain important deliveries. To combat these risks, you must take the necessary steps before a disaster strikes to prevent severe damage and disruption of your business in the future.

HURRICANE PREPARATION SUGGESTIONS

Consider implementing these hurricane preparation suggestions into your business to avoid unnecessary upsets in the event that disaster strikes:

€ Check local flood maps by visiting www.esri.com/hazards. Also have your building inspected by a licensed professional to ensure that the roof and other connections comply with the wind loading requirements for your area.

€ Consider installing impact-resistant film on your windows.

€ Gather a list of vendors and telephone numbers of individuals or entities that are critical to your daily operations. If you heavily rely on one or two vendors, consider adding a backup vendor outside of your area.

€ Prepare a list of companies that can assist you in recovery efforts, such as removing debris, moving and computer services.

€ Provide employees with a chain of command and list of responsibilities in the event that a disaster strikes.

€ Prepare a list of your employees and their contact information. Also find out where they may vacate to, if you are required to evacuate the city.

€ Arrange for communication with your clients and customers, in the event of a disaster, to keep them informed.

€ Constantly diversify your customer base, products and sales locations. This will prevent a major loss, if a majority of your customer base is affected by the hurricane as well.

€ Designate a remote phone number on your voicemail system for which you can record messages to employees in the event of an emergency.

€ Arrange for programmable call forwarding of your business lines with the phone company. Then you can call and reprogram your phones from a remote location, if needed.

€ Install emergency backup lights that turn on when the power goes out.

€ Back up your data on a frequent basis and keep this information off-site.

EMERGENCY HURRICANE PREPARATION Checklist for Business Owners and Operators

EMERGENCY SUPPLIES If employees may be confined for several hours, or even days, consider stocking the following items at your place of business:

€ Flashlight and extra batteries

€ Battery-powered radio

€ Ready-to-eat canned foods, fruits and vegetables. Also energy foods, such as granola bars. Select foods that do not require refrigeration, cooking or preparation.

€ Water stored in plastic containers

€ Urge employees to keep a three-day supply of their medications on-hand as well as pain relievers and stomach remedies.

€ Urge employees to bring in a blanket.

€ Paper plates, cups and utensils

€ Manual can opener

€ Urge employees to keep an extra pair of reading glasses at work.

€ First-aid supplies:

o Adhesive bandages

o Sterile dressing

o Roller gauze bandages

o Triangular bandages

o Gauze pads

o Germicidal hand wipes and alcohol-based sanitizer

o Non-latex gloves

o Adhesive tape

o Cold packs

o Scissors

o Tweezers

o CPR face shield

REDUCING DAMAGE € Bolt tall bookcases and displays to the wall studs.

€ Secure breakable items in a stand using hook-and-loop fasteners.

€ Place large objects on low shelving.

€ Install latches on drawers to prevent them from flying open.

€ Secure pictures and mirrors to the wall with closed screw eyes and wire.

€ Secure your water heater to the wall studs with plumber’s tape or strap iron.

€ Install flexible connectors to appliances using natural gas and automatic fire sprinklers.

WHEN STORMS ARE IMMINENT…

Once you get word that a storm is coming, you must take action NOW. First, secure your facility by covering windows with shutters or plywood. Then, cover and move equipment to a more secure area. Also consider the following actions:

€ Back up your files and move this information off-site.

€ Make arrangements to use alternative means of communication, especially if you cannot shut down your systems completely.

€ Check your emergency supplies and stock up on any necessary items.

€ Help your employees get to their families safely. If it is not safe to leave the facility, establish a meeting point outside of the evacuation area for employees once you can leave.

INSURANCE CONSIDERATIONS

In addition to the various precautions that you should take in-house, you should also have adequate insurance coverage to protect against losses. Contact MCRA to discuss your exact needs and potential coverages that are right for you. Beyond your typical policies, you may also wish to purchase Flood Insurance and Business-Interruption coverage. Also, have your business appraised every five years and provide appraisal documentation for MCRA. In addition, conduct an inventory of your supplies and equipment, including photographs of these items and descriptions. Then leave this information in an off-site location.

Everyone at your facility should know what to do and how to prepare for a

hurricane.

Contact your local Red Cross chapter for more preparation information, and us for all your business and storm insurance needs.

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