Because the damage is so widespread, it is too early to talk about specific claims. However, clearly, flood and property damage from the storm itself are the major threats to local businesses. But property damage isn’t necessarily the main cause of disruption for our clients. Business interruption (BI) losses can also be anticipated, resulting from a loss of power, inability to gain access to premises, or problems with a supplier, among others.
Such losses can take some time to assess due to their complex nature and often can be higher than the actual physical damage arising from the storm or flooding. According to our analysis of large BI insurance claims worldwide (including non-natural catastrophe events), the average large BI property insurance claim is now in excess of $2 million, which is around a third higher than the corresponding direct property damage loss.