The recent spate of winter weather has wreaked havoc from coastto coast over the last month, and businesses and their insurers areexperiencing the damage first-hand. Munich Re's report on natural catastrophes in 2014 found thatthe unusually cold winter caused the greatest losses in NorthAmerica, estimating that heavy frost, snowfalls and blizzardscaused losses of $3.7 billion, with approximately $2.3 billion ofthem insured.

In addition to the damage caused to commercial property byadverse weather, businesses also have to count the cost of poweroutages, and the impact of blocked roads and school closures onproductivity. So how can you support your clients, limit yourexposure, and mitigate the losses caused by severe weather?

Assess the risk

Standard building insurance will cover most of the damageresulting from a freeze or snow and ice damage. However, it may notcover flooding caused by a backup in sewers or drains, or theinevitable business interruption caused by the wait for repairs tobe completed. Review your client's insurance policy to confirm theextent of coverage and determine whether an extension iswarranted.

If you do offer cover for business interruption, carefullyreview current systems and business processes to clarify theconsequences of a power outage, work stoppage or significant damageto property or machinery. Prioritize core functions so that themost important equipment is protected or is the first to berepaired, and calculate what a period of inactivity will cost.

Should an exclusion apply, it pays to ensure that your clientsare aware of the coverage restriction. This will reduce time wastedon unsupported claims and will help you maintain a goodrelationship with your clients and see a higher rate of businessretention.

Ensure that site drawings and plans are up to date and that youare aware of any structural weaknesses which may contribute todamage to a client's building when severe weather hits. Keepapprised of any sudden changes in the weather using local andnational resources (such as the NOAA's Storm Watch). When astorm is approaching, consider issuing a warning to clients alongwith useful emergency contact numbers and loss reduction advice.Clients will appreciate the support and insurers may significantlyreduce the cost of their claims.

Shore up the defenses

Ensure clients have an inspection regime to monitor for thebuildup of snow or ice on sidewalks and paths, the limbs of anytrees and on the roofs of their premises. A robust maintenanceregime to keep gutters free so melting snow and ice can flow freelycan avoid significant damage due to water seepage. Keeping thebuilding heated to a minimum of 65 degrees even when the buildingis closed for the night will prevent pipes from freezing.

Consider incentives to encourage clients to invest in back-upgenerators to ensure continuous power, or monitoring systems towarn them if the temperature inside the building is falling to adangerous level. Sprinkler systems can also be monitored to ensureearly detection of a pipe failure, and a monitored automatic excessflow switch can be placed on the main incoming water line toprovide early detection of a broken pipe or valve. If the buildingwill be empty for an extended period, clients should be required todrain the water system to prevent damage to pipes.

Have a plan of action

Be proactive and help clients create a comprehensive disasterrecovery plan by analyzing every conceivable risk so they canminimize unnecessary delays should the worst happen. Document keybusiness processes and ensure that sensitive and vital informationis stored securely at more than one location. Set clear roles andduties so that recovery will not be hampered by the absence of onekey individual.

Establish clear lines of communication with clients, emergencyservices and disaster recovery professionals so you can reactquickly and effectively. Much of the damage caused by a stormoccurs in the period following the event itself and prompt actioncan go a long way to control the extent of the loss.

With a little preparation and a proactive approach to the risksof severe weather, clients stand the best chance of greeting springwithout a disaster, and insurers will reap the benefits of highclient retention and a low cost of claims.