"We feel pretty confident that someone will [get hit]," said Eric Blake, a specialist at the National Hurricane center. "We're forecasting a major hurricane for the United States East Coast."
CNN.com, 9/15/2003

While weather experts can only estimate the path and timing of a hurricane, those tracking Hurricane Isabel expect the storm to strike somewhere between North Carolina and New Jersey. As Hurricane Isabel shows few signs of weakening, protecting your people, business, property, and operations should be your top priority.

Even if Hurricane Isabel does not impact the Atlantic coast as expected, severe weather will continue to be a threat to your business over the next several months. Furthermore, businesses located in areas unlikely to be affected by hurricanes still face weather-related risks. If you rely upon a supplier located in an impacted area - a common scenario given today's interdependent supply chains -- Hurricane Isabel or another storm could bring your business operations to a halt or force you to suspend operations.

While the impact of windstorms and other natural hazards is largely unpredictable, there are ways to prepare your people and business from Hurricane Isabel. By gaining an understanding of the potential risks associated with hurricanes, training your employees, and planning ahead, you can better manage your company's weather-related risks. As Hurricane Isabel approaches, you should be asking the following questions:

• Do we clearly understand our potential hurricane losses? How can we mitigate the expense?
• Is there a formal plan in place to manage Hurricane-related risks?
• Do employees and operations managers know what to do in an emergency?
• What are the procedures for a storm watch? A warning? An emergency?

"The National Hurricane Center has not yet issued a hurricane warning, and no areas have been evacuated. But emergency management teams up and down the coast yesterday watched the storm's progress warily and went over emergency evacuation procedures."
The New York Times, 9/15/2003

• Do we understand the appropriate steps to ensure the safety of our personnel and protect our facilities?
• How can we continue operations if employees must vacate a facility?
• What should we do after a hurricane passes? How can we determine when it is safe to re-enter a facility?
• Do we know how to effectively communicate with employees, suppliers, customers, the media, public officials, and the general public?
• How can we manage and minimize a storm's impact on my supply chain?
• What can we do to assure suppliers, employees, and customers that our company is prepared for hurricane-related risks?
• Do our property and casualty policies cover us if we have a claim?

To answer these questions, consider the following services that can minimize the impact of a hurricane and help protect your business:

Business Continuity Management — Activate your business continuity and emergency response plans, identify your locations that are most likely to be hit, notify individuals responsible for implementing emergency plans, instruct employees to back up computers to a central server, and ensure recently added locations are included in emergency plans.

Emergency Response Planning — Monitor local weather and news reports closely to determine mandatory evacuation orders from public authorities, assemble your emergency response team and discuss the procedures to be taken if a hurricane warning is issued, and determine when the facility should be closed, keeping in mind the time needed to safeguard the building and evacuate employees. Additionally, assess the vulnerability of the facilities and determine the potential impact on people and assets.

Strategic Risk Communications — Provide timely and appropriate information to reassure different audiences including employees, public officials, clients, analysts, the media, vendors, the general public, and shareholders - that you are effectively managing related challenges. Communicate with employees to ensure they know what to do to prepare for the impending storm and ensure employee lists are up-to-date.

Pre-loss Preparation — Ensure vital records necessary for filing claims will not be destroyed by the storm. Move insurance policies, payroll records, inventory records, etc. to a safe location.

Two weeks ago, Hurricane Fabian clearly demonstrated the severity and extent of destruction caused by severe windstorms. When Hurricane Fabian hit Bermuda, its 120-mph winds damaged or destroyed several thousand roofs and left approximately 25,000 of 32,000 Bermuda Electric Light Company customers without power. With Hurricane Isabel's winds nearing 140-mph, the time to take steps to protect your people and business is now.

To ensure you're ready to respond if Isabel hits, have the following on hand: insurance policy and number as well as your carrier's or broker's phone number.

If you have any questions or would like additional information, please contact us.