Earthquake Preparedness Month: Opportunity for Calif. to lessen coverage problems

In California’s high-risk insurance market, strategic solutions are needed to offer affordable earthquake coverage for commercial policyholders and businesses. (Photo: Shutterstock)

To say California has had a rough stretch the last number of years in the catastrophic loss world would be an understatement. But as we continue into 2020 and head into California Earthquake Preparedness Month, organizations can take steps to lessen and mitigate earthquake coverage problems.

The 2010s were the costliest decade ever for natural disaster-driven economic losses at nearly $3 trillion, according to one estimate. In particular, earthquakes pose a persistent danger to California, but most commercial insurance policies do not cover them, and according to the Department of Insurance data, fewer than 10% of commercial buildings in the state are covered by earthquake insurance.