Filed Under:Markets, Commercial Lines

FM Global's Lou Gritzo Discusses Sandy Impact

While the mainstream press is focused on property damage, insurance-industry players know that Business Interruption and Contingent Business Interruption claims from commercial clients are going to account for a hefty percentage of the claims resulting from Sandy.

"The impact on the supply chain is going to be dramatic," FM Global Vice President of Research, Dr. Louis Gritzo tells NU. "Given the amount of commerce and transportation that occurs in Sandy's corridor, and the location of five major ports in its path, this event is going to ripple across the entire U.S. econonmy."

Gritzo points out that the most vulnerable businesses are those that have been most successful in practicing lean, "just-in-time" manufacturing processes. Those companies that don't have much inventory to draw on could face a "long and painful" recovery as new materials could be hard to come by.

The companies best situated for a speedy recovery: Those that have a flood-emergency response plan and have made sure that their suppliers have one as well; and those that have a plan for dealing with extended power outages. "Keeping the water out and the power on are the top priorities for getting a property back in business," Gritzo says.

For FM Global's clients, Gritzo notes that the company employs 1,800 engineers--who can accompany claims adjusters and consult on ways to minimize losses and get back to full speed as soon as possible.

Featured Video

Most Recent Videos

Video Library ››

Top Story

Oakland warehouse fire kills dozens of party-goers

There has been growing scrutiny about the warehouse, which was the subject of health and safety complaints that the city was investigating at the time of the fire.

Top Story

Timeline revealed for possible NAPSLO/AAMGA merger

NAPSLO and AAMGA answer questions about a potential merger of the two organizations.

More Resources

Comments

eNewsletter Sign Up

PropertyCasualty360 Daily eNews

Get P&C insurance news to stay ahead of the competition in one concise format - FREE. Sign Up Now!

Mobile Phone

Advertisement. Closing in 15 seconds.