Awareness of, and concern for, natural hazards has increased significantly in recent years, both from internal risk management as well as insurance liability perspectives. Global Risk Miyamoto regularly helps companies identify these exposures, evaluate their severity and potential impact, develop action plans, and implement cost-effective mitigation strategies at the local site and corporate levels.
Recently, natural hazards insurability and the associated costs for coverage have become increasingly painful issues for Risk Managers. A big step towards reducing this pain is to be able to have accurate information at hand to tell a story about the actual risks present, how these risks impact the affected locations, and what passive or active mitigation efforts are currently in place or planned for the future.
Earthquake
Many heavily populated and industrialized areas live with major seismic exposure. Despite this significant risk, numerous industrial operations do not have earthquake insurance, or have purchased it with very high deductibles. As a result, the potential impact on the bottom line due to an earthquake far outweighs that of a fire, explosion, flood, windstorm or other covered exposure.
We consider the exposure to seismic events in every site evaluation. We help reduce the potential impact of these events by working with site personnel to anchor key equipment, install seismic shut-off valves on flammable gas and other hazardous material distribution systems, develop effective emergency response and business continuity plans, review new construction specifications and plans, and implement cost-effective measures to address seismic exposures in the early stages of construction.
Flood
Examining flood exposure is a key part of a thorough site evaluation. Our natural hazards program includes site-specific surveys by experienced engineers and a review of flood information, generated by government entities and special flood studies from other sources, to determine the flood exposure level of a facility. Exposure could exist from a nearby river or other body of water, coastal flooding, levee breach, or flash flooding.
We couple that information with thorough understanding of site operations and site-specific data to provide recommendations on reducing the risk of damage and business interruptions from flooding.
Windstorm and Hurricane
Our windstorm experts work closely with companies who have facilities exposed to hurricanes and other strong windstorms. Site preparedness is important in limiting loss potential from hurricanes and other windstorms, because there is usually time to prepare for an impending event. Our experts work with clients on corporate preparedness plans specific to the client’s occupancy and individual facilities.
In addition, we monitor and can forward information obtained from The National Hurricane Center and other sources to companies with locations in the projected path of a hurricane, providing additional consulting services for specific needs at these individual sites.
