|By PR Newswire||
|November 3, 2012 12:19 PM EDT||
NEW YORK, Nov. 3, 2012 /PRNewswire-USNewswire/ -- As business owners on the East Coast begin the claims filing process, following the devastation of Hurricane Sandy, a reminder from the Insurance Information Institute (I.I.I.) that standard business insurance policies provide coverage for hurricane damage.
Business income (BI)—also known as business interruption insurance—compensates you for lost income if your company has to vacate the premises due to disaster-related damage that is covered under your property insurance policy. BI covers the profits you would have earned, based on your financial records, had the disaster not occurred. The policy also covers operating expenses, like utilities, that continue even though business activities have come to a temporary halt.
BI typically comes into play if there is physical damage to the structure, though a few companies now offer what is called "non-physical" business interruption insurance which insures for business interruption without a preceding physical loss.
A survey by the National Association of Insurance Commissioners (NAIC) in 2007 found that only 35 percent of small businesses, defined as firms with fewer than 100 employees, have business interruption insurance.
"After a major disaster, it can take more time than many people anticipate getting a business back on track," said Loretta Worters, vice president with the I.I.I. "Depending on the policy, there is generally either a 48-hour or 72-hour waiting period before business interruption coverage kicks in," she noted, adding, "too many business owners fail to think about how they would manage if a hurricane damaged their business premises so that it was temporarily unusable."
If a business does not have physical damage coverage for their property but could not access their location due to an Order of Civil Authority, there could still be coverage for their lost business. However the order must be the result of a peril that is covered under the business owner's policy.
"For business interruption to be triggered under civil authority, there also has to be some physical damage in the area where the property is located and coverage typically lasts up to 30 days," Worters pointed out.
If the business cannot operate due to the loss of power, there could be coverage under what is typically referred to as "off-premises service interruption." In this scenario, the business owner does not have to have damage to their facility, but the power outage must be caused by damage from a covered peril under the policy such as wind, fire, electrical breakdown, etc.
If a business has extra income coverage, the policy will reimburse the sum of money the business spends, over and above normal operating expenses, in order to avoid having to shut down during the restoration period.
Worters noted that those businesses that were not physically affected by the hurricane, but whose suppliers or customers were affected, will be protected if they have contingent business interruption insurance. "Companies today are heavily dependent on raw materials from key suppliers to make the products they sell. If the supplier suffered a loss and could not deliver the product, their contingent business interruption insurance will help."
Flooding is not covered under standard business owners policies, unless specifically added as an endorsement and usually carries its own deductible, so it is important to check with your insurer or broker. Flood insurance is available from the federal government's National Flood Insurance Program (NFIP) and a few private insurance companies. From 2007 to 2011, the average commercial flood claim was over $75,000, according to the NFIP. Business Interruption coverage is not available under the NFIP.
Damage to vehicles from flooding, felled trees or other debris is covered under the optional comprehensive portion of an auto insurance policy.
How to file a Business Claim
"Business owners who have suffered losses need to contact their insurance company or agent as soon as possible to start the claims filing process," urged Worters.
The I.I.I. offers these four tips to get the claims process started:
- Read your insurance policy carefully so that you know what your responsibilities are after a loss.
- Take steps to protect your property from further damage by making temporary repairs. If immediate repairs to equipment are necessary, save the damaged parts in case the claims adjuster needs to examine them.
- Get at least two bids on the cost to repair or replace damaged property. When filing a business interruption claim, be able to show the income the business was generating both before and after the loss.
- Keep detailed records of business activity and the extra expenses of keeping your business operating in a temporary location during the interruption period. If you are forced to close down, include expenses that continue during the time that the business is closed, such as advertising and the cost of utilities.
THE I.I.I. IS A NONPROFIT, COMMUNICATIONS ORGANIZATION SUPPORTED BY THE INSURANCE INDUSTRY.
Insurance Information Institute, 110 William Street, New York, NY 10038; (212) 346-5500; www.iii.org
SOURCE Insurance Information Institute
Everyone talks about continuous integration and continuous delivery but those are just two ends of the pipeline. In the middle of DevOps is continuous testing (CT), and many organizations are struggling to implement continuous testing effectively. After all, without continuous testing there is no delivery. And Lab-As-A-Service (LaaS) enhances the CT with dynamic on-demand self-serve test topologies. CT together with LAAS make a powerful combination that perfectly serves complex software developm...
Aug. 27, 2015 04:15 PM EDT
Skeuomorphism usually means retaining existing design cues in something new that doesn’t actually need them. However, the concept of skeuomorphism can be thought of as relating more broadly to applying existing patterns to new technologies that, in fact, cry out for new approaches. In his session at DevOps Summit, Gordon Haff, Senior Cloud Strategy Marketing and Evangelism Manager at Red Hat, discussed why containers should be paired with new architectural practices such as microservices rathe...
Aug. 27, 2015 04:00 PM EDT Reads: 330
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of ...
Aug. 27, 2015 03:45 PM EDT
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Aug. 27, 2015 02:45 PM EDT Reads: 374
Any Ops team trying to support a company in today’s cloud-connected world knows that a new way of thinking is required – one just as dramatic than the shift from Ops to DevOps. The diversity of modern operations requires teams to focus their impact on breadth vs. depth. In his session at DevOps Summit, Adam Serediuk, Director of Operations at xMatters, Inc., will discuss the strategic requirements of evolving from Ops to DevOps, and why modern Operations has begun leveraging the “NoOps” approa...
Aug. 27, 2015 02:30 PM EDT Reads: 296
In today's digital world, change is the one constant. Disruptive innovations like cloud, mobility, social media, and the Internet of Things have reshaped the market and set new standards in customer expectations. To remain competitive, businesses must tap the potential of emerging technologies and markets through the rapid release of new products and services. However, the rigid and siloed structures of traditional IT platforms and processes are slowing them down – resulting in lengthy delivery ...
Aug. 27, 2015 02:15 PM EDT Reads: 501
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
Aug. 27, 2015 02:15 PM EDT
In their Live Hack” presentation at 17th Cloud Expo, Stephen Coty and Paul Fletcher, Chief Security Evangelists at Alert Logic, will provide the audience with a chance to see a live demonstration of the common tools cyber attackers use to attack cloud and traditional IT systems. This “Live Hack” uses open source attack tools that are free and available for download by anybody. Attendees will learn where to find and how to operate these tools for the purpose of testing their own IT infrastructu...
Aug. 27, 2015 02:00 PM EDT Reads: 287
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
Aug. 27, 2015 02:00 PM EDT Reads: 319
Whether you like it or not, DevOps is on track for a remarkable alliance with security. The SEC didn’t approve the merger. And your boss hasn’t heard anything about it. Yet, this unruly triumvirate will soon dominate and deliver DevSecOps faster, cheaper, better, and on an unprecedented scale. In his session at DevOps Summit, Frank Bunger, VP of Customer Success at ScriptRock, will discuss how this cathartic moment will propel the DevOps movement from such stuff as dreams are made on to a prac...
Aug. 27, 2015 01:00 PM EDT Reads: 159
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Aug. 27, 2015 01:00 PM EDT Reads: 279
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Trel...
Aug. 27, 2015 11:30 AM EDT
SYS-CON Events announced today that G2G3 will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Based on a collective appreciation for user experience, design, and technology, G2G3 is uniquely qualified and motivated to redefine how organizations and people engage in an increasingly digital world.
Aug. 27, 2015 11:30 AM EDT Reads: 382
The Internet of Things (IoT) is about the digitization of physical assets including sensors, devices, machines, gateways, and the network. It creates possibilities for significant value creation and new revenue generating business models via data democratization and ubiquitous analytics across IoT networks. The explosion of data in all forms in IoT requires a more robust and broader lens in order to enable smarter timely actions and better outcomes. Business operations become the key driver of I...
Aug. 27, 2015 10:45 AM EDT Reads: 306
SYS-CON Events announced today that DataClear Inc. will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The DataClear ‘BlackBox’ is the only solution that moves your PC, browsing and data out of the United States and away from prying (and spying) eyes. Its solution automatically builds you a clean, on-demand, virus free, new virtual cloud based PC outside of the United States, and wipes it clean...
Aug. 27, 2015 10:30 AM EDT Reads: 299