At least the executives at risk manager and insurer Aon understand what the victims of Hurricane Sandy are going through. Aon’s building in lower Manhattan was taken out by the storm as the aptly named Water Street location was swamped by Sandy’s 12-foot storm surge.
“It’s a good thing Aon is a big company with offices in New Jersey, Chicago and Boston,” says Rick Miller, chief broking officer at Aon Risk Solutions’ U.S. property practice, speaking from a dry Aon office in Boston. “There are a lot of companies in lower Manhattan where their whole business was in one building that had to be closed down because of the flooding.”
“There should have been lessons learned from Thailand and Japan,” agrees Tom Teixeira, practice leader for global markets at Willis. “Clearly they weren’t.”
He warns that many companies that suffered business interruption losses because of power failures, supply chain interruptions, loss of entry and egress for workers or loss of access to customers may find that the BI coverage they thought they had isn’t there.