天美网站传媒传媒

Well Thought Out Disaster Plans Make the Difference

Midwest agents with offices located in flooded areas are facing the challenge of “staying afloat,” so to speak, during the devastation of what some have called the 500-year flood event. Iowa has the distinction of having the most devastation due to flooding. At this writing the Insurance Services Office calculated that tornadoes and floods that have struck Iowa since May 25 have caused $235 million worth of damage. But those estimates, from nearly 27,000 claims, don’t even include flood claims.

Iowa cities such as Davenport are estimating that they will be forced to spend nearly $4.5 million on flood damages, clean up and future protection efforts. The numbers of claims will continue to rise. Agents and residents are still waiting for all flood waters to recede and the memories of the catastrophic events are still fresh in the minds of those working right in the middle of this disaster.

One group, Millhiser-Smith Agency Inc., located in hard hit Cedar Rapids, Iowa, relied on a disaster plan it created with professional help some years ago.

“Our disaster plan included Agility Recovery Solutions to cover all the bases,” said Lottie Miller, director, E&O Compliance and Insurance Resources. “When our electricity went out we had a generator, we had complete back-up for phone and computer files and even a place to relocate if we needed it, through this company.”

Miller offered some perspective and history on the area.

“One of the unfortunate aspects of this flooding event is that it was centered in the heart of the city itself,” Miller said. “Like many Midwestern towns, Cedar Rapids was built along the river, a lifeline of transportation and development for pioneer settlers. Then the very thing that provided life and prosperity to a foundling community in those early days, turned on its modern day residents in a manner incomprehensible to the business and residential communities residing alongside the river today.”

Planning is key

Preparation is key, according to Miller. She emphasized that there are several recovery companies that will help you create a disaster plan and provide the tools to continue to operate your business. She said the important point is to make “the decision to get a plan in place.”

Representatives from True North, also located in Cedar Rapids, couldn’t agree more with Miller. The True North facility was flooded and the entire staff of almost 200 agents and employees were moved out of their headquarters.

“Thanks to expert planning and help from professionals we were able to serve our clients from remote locations,” said Shannon Moss, vice president of Marketing for True North.

Moss offered this timeline describing how the agency survived the crisis:

• June 11 – Mandatory evacuation phone call. Business continuation plan put in motion.
• June 12 – Power shut off, but restored a half hour later, via generator power. Office sandbagged that evening.
• June 13 – Office surrounded by water and water entered the building through elevator shafts.
• June 14 – Clean-up started; Again evacuated by local police due to potential flood area hazards.
• June 17 – 20 Allowed limited entry to the building and professional cleaning completed.
• June 23 – Welcomed employees back to the building with a white carpet on the sidewalk to signify a clean environment. Continue to operate with generator power.

“Our emergency plans made the difference and through it we never loss touch with our clients or companies,” Moss said. She added that “we are a stronger as a company and in the community because of this experience. We continue to monitor the safety of our environment as we go forward for our people,” Moss added.

Bob Boyd, president and CEO of Agility Recovery Solutions, is currently working with several agencies in Iowa. Boyd said that his company delivers any or all of the four key elements of recovery, including power, technology, space and connectivity resources.

Boyd said that insurance agencies and other businesses struggle to serve clients when office locations are within the catastrophe area.

“Many agency heads look at the added expense of hiring a company like ours as unnecessary until a catastrophic event such as the flood along the Mississippi really brings the need home,” Boyd said.

Boyd said membership dues for Agility Recovery run about $250 a month. That fee guarantees that help will be at the agency or business doorstep within 48 hours, often sooner. Additional charges are added for equipment such as a complete mobile unit, extra computers, copies, fax machines and more.

“All of these items are delivered in the shortest time possible and can make a big difference in the recovery of a business or agency,” Boyd said.

Agents meet challenges

Bob Skow, CEO of the Independent Agents of Iowa, said that many agencies were hit hard but a good many were able to relocate or with the help of cell phones, laptop computers and the back-up of computer files allowed to continue service without too much interruption.

“We have been blessed in that the vast majority of agencies have been spared,” Skow said. He said that towns such Waverly, Iowa City, Cedar Rapids were all devastated by the flood, but many agencies were in higher ground locations and that factor made a difference.

Advice from New Orleans

Skow agrees that disaster plans make a big difference and said he knew some agencies in New Orleans survived and thrived because of planning ahead.

Anderson Baker, president of Gillis, Ellis and Baker of New Orleans, agrees with Skow and offered some advice as well.

“Our plan worked flawlessly and we had a mobile facility equipped with all the necessary technology tools within 48 hours,” Baker said. “We reaped the rewards of good planning and didn’t have to worry about errors and omissions.”

Baker warned Midwest agents about offering advice to policyholders regarding flood policies and on business interruption coverage.

Baker said that agents should remember to be very careful in their advice to policyholders.

“No agent has the ability to settle business interruption claim and should not act as a lawyer if disputes arise.

“You can offer support and advice but that is a far as it goes,” Baker said.

Rebuilding again

For the most part, Iowans and their insurance agents are standing tall and have a positive attitude, Lottie Miller of Millhiser-Smith said.

“Iowans are resilient people. We’ve dealt with much that nature throws at us for centuries and have always fought back, regaining lost ground,” Miller said. “We must look forward and work, as a community, clean up, rebuild and make our city something of which we can again be proud. I am counting on that.”

Flood insurance is affordable
The annual premium for a homeowners NFIP policy starts at $119 per year for $20,000 of property coverage (without a basement) and $8,000 worth of contents , according to FEMA, and increases according to the level of flood risk, whether you have a basement and amount of coverage needed. The maximum coverage amount is $250,000 for the structure of the home and $100,000 for the contents of the home. Renters can pay as little as $39 per year for $8,000 in contents coverage. Flood insurance is available on a replacement cost basis for the structure of the home and on an actual cash value basis for personal property.

It is easy to assess your flood risk
More than 20,000 communities in all 50 U.S. states and territories voluntarily participate in the NFIP, encompassing nearly all properties in the nation’s high-risk flood zones. For more information, visit the Your Flood Risk section of the NFIP’s FloodSmart Web site; in the lower left hand corner is a One Step Flood Risk Profile tool where you can enter your address to determine your level of flood risk.

Topics Agencies Flood