Hurricane Sandy, a storm that forecasters say is on a scale withlittle precedent on the East Coast, is likely to trigger asignificant volume of commercial property claims, according toWillis, the global insurance broker.

“Given the size of the storm its potential impact will likely bewidespread. The entire insurance industry on high alert,” DavePassman, national director of national property claims for Willis'Strategic Outcomes Practice, says in a statement.

Willis anticipates claim activity to be driven largely bywindstorm, flood, service interruption and closure by order ofcivil authority. In addition to normal concerns about flooding,there is also serious concern about salt water flooding asa result of storm surge, as salt water accelerates corrosion andwill add to the damage toll.

“So far there are only a handful of claims reported. This isexpected as it could take 24-72 hours after the storm settlesbefore it is safe for business owners to access property and assessdamages,” Passman says. Willis has assembled its critical incidentteam and stands ready to assist clients. Currently Willis has inforce more than 100 claim consultants and a dedicated Property teamprepared to assist insureds once the storm passes by.

Aon's Al Tobin, managing principal of the brokerage's RiskSolutions' Property Practice, notes in a statement: “Aon's riskexperts are closely monitoring the situation with Hurricane Sandyas it relates to the clients, colleagues and communities which weserve. We are working with clients to help them navigate the storm,advising them on the best risk management and business-interruptionpractices to help them secure the safety of their employees and thecontinued sustainability of their business operations. Our primarygoal is to help our clients now and throughout the claims processso they can get back to business as usual as soon as possible.After the storm passes and everyone is safe, we will help clientsidentify those systems that are most critical to the recovery ofits operations in order to assure business continuity. Everyorganization should be methodical with their recovery activities,focusing on services that will help employees, customers andsuppliers.”