Floods, tornadoes and risk management
Floods, tornadoes and risk management
As you read this e-mail, communities from Memphis to New Orleans are coping with the effects of the rising Mississippi River. In Missouri more than 130,000 acres of agricultural land have been flooded. Because the flooding is expected to continue until the end of May, it is impossible to put a price tag on damages. For starters, though, the Missouri Farm Bureau has already estimated damages to Missouri farmland alone will exceed $100 million.
Only two weeks ago, massive tornadoes and thunder storms rampaged through Alabama, Mississippi, Georgia and Tennessee. The storms killed dozens of people and closed countless businesses. One estimate places insured losses to residential, commercial and industrial properties and their contents, and to automobiles at between $3.7 – $5.5 billion.
To call the families and businesses with insured losses “lucky” may seem insensitive, but good fortune can be relative. Uninsured or under-insured families and businesses that didn’t prepare for one minute from normal won’t be so lucky
If there is any silver lining to this staggering misfortune, it is how it serves to underline the crucial importance of risk management. Bad stuff, unfortunately, happens. However, good risk management and insurance planning can help a forward thinking company to survive the bad stuff.
A company can recover from a revenue dip, a client defection and even the loss of a key executive. However, when one minute from normal strikes, insufficient or the wrong insurance coverage can wash away years of hard work.
KMRD Partners provides risk management consulting and liability insurance to protect against potentially catastrophic losses. To learn more about how you can prepare your company contact us at contactus@kmrdpartners.com before one minute from normal strikes.
