An explosion of a steam boiler in a high-rise building caused civil authorities to close surrounding streets. Occupants of neighboring businesses could not operate for weeks. A business that leases transponder space on its space satellite is required to cancel its contracts when the satellite malfunctions. What are the common denominators in these scenarios? First, the disaster was not anticipated. Second, each business had not focused well enough on its disaster planning. As professional loss consultants, we have assisted thousands of companies and organizations that suffered losses resulting from natural and man-made disasters. Some recover, some do not. Those who anticipate what could happen—and thoroughly plan for it—stand a much better chance of surviving. The chances of a full and expedient recovery are greatly improved when a comprehensive disaster recovery plan is in place. Such a plan should fully integrate insurance, technology, emergencyresponse and business-recovery components. Natural Disasters are Becoming More Frequent The intent of this article is to heighten your awareness of the need for disaster recovery planning. That need is dramatized most clearly by listening to the experts themselves: • “One catastrophe modeling company predicts that catastrophe losses will double every decade or so due to growing residential and commercial density and more expensive buildings.” (Insurance Information Institute) • “Tornado losses of $1 billion and higher are becoming more frequent.” (A.M. Best, April 2008) • “About 5,000 quakes can be felt each year, with some 400 capable of causing damage to the interior of buildings and 20 causing structural damage.” (Insurance Information Institute) The following examples demonstrate that man-made disasters, too, can have an impact felt far beyond the premises: • Faulty soil work to a newly constructed ethanol plant causes physical damage to the plant of The chances of a full and expedient recovery are greatly improved when a comprehensive disaster recovery plan is in place. 2 ADJUSTINGTODAY. COM A D J U S T I N G T O D A Y
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