Willis, Aon Weigh in on Storm

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

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

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

“So far there are only a handful of claims reported. This is expected as it could take 24-72 hours after the storm settles before it is safe for business owners to access property and assess damages,” Passman says. Willis has assembled its critical incident team and stands ready to assist clients. Currently Willis has in force more than 100 claim consultants and a dedicated Property team prepared to assist insureds once the storm passes by.

Aon's Al Tobin, managing principal of the brokerage's Risk Solutions' Property Practice, notes in a statement: “Aon's risk experts are closely monitoring the situation with Hurricane Sandy as it relates to the clients, colleagues and communities which we serve. We are working with clients to help them navigate the storm, advising them on the best risk management and business-interruption practices to help them secure the safety of their employees and the continued sustainability of their business operations. Our primary goal is to help our clients now and throughout the claims process so they can get back to business as usual as soon as possible. After the storm passes and everyone is safe, we will help clients identify those systems that are most critical to the recovery of its operations in order to assure business continuity. Every organization should be methodical with their recovery activities, focusing on services that will help employees, customers and suppliers.”