According to the Insurance Information Institute, from 2012 to 2013 the number of catastrophes in the United States increased to 29 from 26 (catastrophes are defined as payouts of at least $25 million).
The dollar cost from insured catastrophe losses from 1994 – 2013 totaled $397 billion (excluding National Flood Insurance Program payouts). And to top it off, in May 2014, severe thunderstorms and hail in the United States caused $2.6 billion in insured losses -- the largest insured losses worldwide for the first half of 2014.
These statistics only illustrate part of the story, because they only represent losses that were paid out by insurers. Imagine then, what the total losses may be for businesses if claims that were denied or only partially covered were included. Patricia D. Shore provides advice and insight for businesses seeking to better understand and prepare for such events in the May 2014 Risk Management article, “The Seven Deadly Sins of Disaster Recovery.” One key pointer Ms. Shore offers? Expect your claim to be challenged. Read the article for further information on how to successfully obtain insurance relief after a catastrophe.