Insurance Insights ~ June 1997

Preparing For Disaster

There have been 14 major natural disasters in this country since 1989 that have each resulted in property losses totalling over $1 billion. Some of these disasters carry names like Andrew, Opal, and Fran. Then there are the unnamed disasters such as the winter ice storm of 1993, which debilitated the eastern U.S., or the blizzard of 1996, which wreaked havoc on the mid-eastern states.

The Federal Government has spent over $120 billion in disaster assistance since 1977. The insurance industry alone dished out $54 billion in catastrophic claims, not to mention the billions of dollars spent by individuals and private businesses rebuilding their lives and livelihoods.

Did you know that:

• 80% of the population of Homestead, Florida has abandoned the area after Hurricane Andrew struck?
• 333 businesses were damaged by the Oklahoma City bombing?
• 60% of fire damaged businesses never re-open? Of those that do re-open, 80% fail in the first year.
• More than 75,000 people were unemployed as a result of Hurricane Andrew, and 82,000 businesses were disrupted?
• The annual cost of insured losses resulting from catastrophes in Pennsylvania, Maryland, and Delaware exceeds $79 million?

The Federal Emergency Management Agency (FEMA) and the American Red Cross both stress the importance of pre-planning for disaster. This is the key to survival. The plan must be well documented, easy to follow and ready to initiate at a moments notice. Don't misunderstand, preparedness cannot guarantee that your business will not be affected by a disaster, but you will go a long way to mitigate the effects and speed up your recovery. The real disaster is not planning!

So, what can be done to prepare for disaster? First, determine what are the most likely events to occur in your geographic area. After you analyze and decide your vulnerability to specific situations, work on a recovery plan.

Begin with the implications of the loss or shutdown of equipment and/or facility rather than the actual peril which causes the damage. For example, damage to electrical equipment could affect the automation system, electronic phones, the heating and cooling system in the building, data transmission lines, etc. This could cause interruption of sales and service for a period of time and possibly the destruction of sensitive equipment and data.

Consider what perils might cause damage to electrical equipment. Is your area highly susceptible to electrical storms? If so, there could be a significant probability the electrical equipment will be damaged. Now, decide how to prepare and determine what it will cost to prevent or minimize damage. Consider an uninterruptible power supply or battery backup. Compare the cost of this protection to not only the cost of damaged equipment and data, but also projected downtime and lost business.

A few key questions to ask yourself are: How much would normal operations be affected; How likely is it to happen; and How much would prevention cost? Keep this thought in mind -- "An ounce of prevention is worth a pound of cure!"

There are many resources available to you. For additional tips and information, check out the FEMA website at http://www.fema.gov/, the American Red Cross website at http://www.redcross.org/, or e-mail our agency at info@gcwinsure.com.

Backyard Summer Bliss

Summer has arrived, and that means sun and fun with family and friends. While everyone swings, slides, or jumps into summer, you certainly don't want anyone to get hurt on your property. Since homeowners could be held liable for injuries to guests, it's a good idea to take some precautions now to avoid problems later!

We would like to offer the following hints to make your backyard a safer place for everyone this summer.

Pools

• All pools should be surrounded by a 4 to 6 foot fence with a locked gate.
• Make sure the ladder and hand rails are sturdy and surround the pool with only non-slippery surfaces.
• Mark water depths on the side of the pool.
• To inhibit bacteria growth, keep the water's PH balance at 7.0. Free chlorine residual should be between .25 ppm and 1.0 ppm.

Trampolines

Trampolines can have you flying high, but extra care needs to be taken with these latest backyard toys.

• Always install your trampoline away from building, trees, pools, overhead wires, etc.
• Surround your trampoline with an 8-foot perimeter of soft bark or chopped rubber to cushion falls.
• Anchor the trampoline so that it cannot blow over in high winds and cause damage.
• Supervise children at all times.

Jungle Gyms

This ever-popular way to swing through summer offers enough activities to keep everyone busy.

• Anchor the set into cement, and pad the ground with a base of chopped rubber or fine bark to cushion falls.
• Countersink bolts and cap with rubber or plastic grommets to prevent scratches and cuts to tender skin. Replace worn parts immediately, and sand wood surfaces to prevent splinters.
• If your gym has a swinging rope, ensure the line has adequate strength to hold the weight of the heaviest children, and place secured knots at 12-16" intervals.
• Remind children to keep their hands away from their eyes and mouths when playing on the latest chemically treated wood gyms to avoid irritations. Small children should not chew on the wood.

Tree Houses

Tree houses can provide hours of fun and imaginative play during hot summer months. Parents need to make certain the structure is safe and to set up a few safety rules for the club house. Remind the kids that horseplay can be dangerous, and no one should ever jump from the tree house.

Pets

Pets are an important part of the family and have special needs during the hot summer months. The heat may cause your pets temper to flare, so keep animals restrained and away from the backyard excitement to be on the safe side.

After making certain that everyone knows the safety rules at your house, grab that iced tea, and head for the pool! Enjoy your summer.

Canadian Trip in Your Future?

Before leaving for your trip to Canada, make sure you contact your automobile insurance agent for a "Canadian Non-Resident Inter-Province Liability Insurance Card." You will need to carry this card with you if you are crossing the border with your vehicle.

Although Customs does not require the insurance card to be shown when entering Canada, individual provinces and territories can impose fines and penalties should you commit a traffic violation or have an accident and are unable to produce it. Such actions could range from a warning to impoundment of your vehicle depending upon the nature of the incident.

You now know why you should "carry the card." Better to be safe than sorry!

INSURANCE INSIGHTS is an electronic newsletter published monthly by G. C. Weimer Associates, Inc. Information contained herein is accurate to the best of our knowledge and belief as of 6/1/97. If you have a topic of interest for a future issue, e-mail us at info@gcwinsure.com.

|| Home || About GCW || Why GCW || Our Services || Performance Standards || People ||

To contact G.C. Weimer Insurance Agencies, e-mail info@gcwinsure.com (please read this first).