News

  • Do more with your content!Discover PreventionWeb Services
  • Every dollar spent on hurricane protection can prevent US$105 in business property loss, disruption
    https://www.preventionweb.net/go/59005

    Email sent!

    An email has been sent to the email addresses provided, with a link to this content.

    Thank you for sharing!

    OK

Every dollar spent on hurricane protection can prevent US$105 in business property loss, disruption

Source(s):  FM Global

Take it to the bank: Every US$1 a business spends on hurricane protection reduces loss exposure by an average of US$105.

That’s based on a new analysis by FM Global, one of the world’s largest commercial and industrial property insurers. “Businesses often wonder if they are getting a good return when they invest in preventing hurricane-related wind and flood damage,” said Brion Callori, senior vice president, engineering and research manager, for the company. “This analysis has yielded a pretty convincing answer. And the 1-to-105 ratio doesn’t even reflect the business repercussions of a major hurricane loss such as damage to reputation, market share and shareholder value.”

To arrive at the ratio, FM Global tallied an estimate for over 10,000 wind and flood related investments and their associated reduction in property loss and business disruption exposure for 1,800 clients around the world from 2008 to 2017. These estimates are calculated based on actual losses that have occurred at tens of thousands of properties insured by FM Global.

Actions to take

Cost-effective prevention is worth considering as the 2018 hurricane season begins. FM Global advises businesses in hurricane-prone areas to expect a one-two-punch of wind and water.

To help minimize the effects of costly wind damage, organizations should have backup power generators ready, rooftops inspected and secured, doors braced, windows covered, and vulnerable objects put away or strapped down, including rooftop equipment and solar panels.

Businesses can prevent costly flood damage by elevating or sealing off valuable equipment, fastening storage tanks, inspecting fire protection equipment, and preparing to turn off utilities. Flood protection products that meet rigorous certification testing standards can reduce the need for sandbags.

Any business exposed to flood risk should invest in developing and practicing a flood emergency response plan (FERP). Facilities with well-organized flood emergency response plans have nearly 70 percent less damage, and resume operations sooner than those with no plan or an inadequate one, FM Global loss history has shown.

For additional information on preparing for natural hazards, visit this webpage.



Add this content to your collection!

Enter an existing tag to add this content to one or more of your current collections. To start a new collection, enter a new tag below.

See My collections to name and share your collection
Back to search results to find more content to tag

Log in to add your tags
  • Publication date 27 Jun 2018

Please note:Content is displayed as last posted by a PreventionWeb community member or editor. The views expressed therein are not necessarily those of UNDRR PreventionWeb, or its sponsors. See our terms of use