The New York Department of Financial Services published an Industry Guidance describing expectations of insurers in preparing for and responding to disasters. Insurers should have safeguards in place to ensure that a disaster does not affect their ability to continue doing business and servicing their consumers.

Even before a disaster has occurred, insurers should have already completed the Disaster Response Plan Questionnaire, where they summarize their disaster response plan and show approval of the plan. Insurers must also complete a pre-disaster data survey to the Department, breaking down the number of policies they have in effect in each county.

Insurers should at least annually reflect on their business continuity and disaster response plans, where they predict the consequences of a disaster and develop recovery responses. They should consider scenarios where a business interruption would have the greatest impact, the operational impact of damage to buildings, damage or breakdown of machinery or systems, and resources necessary for the business to continue to function.