September 10, 2004—With winds capable of exceeding 160 miles per hour, Ivan already has devastated Grenada, killing at least 20 people and causing significant property damage. If Ivan hits Florida, it would be the first time in more than 30 years for three hurricanes to make landfall in the state in a single year.



Though Florida remained several days away [from Ivan hitting] and many things could change, computerized forecast models—and the official long-term forecast—brought the storm over the Florida Keys and South Florida on Monday. Local forecasters alerted the region to expect gusty winds and rain bands as early as Sunday.
The Miami Herald, 9/9/04

Although Ivan’s course is likely to change, it is on a path to hit the Keys, where officials have already ordered an evacuation, as well as South and Central Florida. Computer models currently indicate that Florida will be hit with heavy winds and rain some time this weekend or early Monday morning. Unless Ivan changes course, heavy, potentially deadly, flooding is expected, especially in areas already devastated by the previous two hurricanes.

In preparation for the most lethal storm of the season to date, businesses in the potential path of the storm, or with suppliers and vendors in the area, should take several measures:

• Ensure that business continuity plans are in place and individuals are ready to implement them.
• Institute measures to communicate with employees in the event of an evacuation or other business interruption issue.
• Gather applicable insurance policies and review the policy terms, limits, and deductibles that may apply to flood and windstorm losses.
• Contact insurance brokers regarding policies and determine whether the broker has a catastrophe response team in place to assist in recovering from damages.
• Establish the accounting protocols needed to accurately measure damages.
• Pre-arrange for the expert services needed in the event of property damage or business interruption losses, including forensic accountants and engineers.
• Determine if there are ways to recoup deductibles or other losses through federal or state assistance, i.e., the Federal Emergency Management Agency (FEMA) or Small Business Administration (SBA).

Marsh clients can rely on the support of the Property Catastrophe team to help them prepare for and to see them through the post-hurricane recovery process. The team includes representatives from Property Claims, Forensic Accounting, CAPS, Business Continuity, and Construction. The team is poised to assist with the evaluation of damages, filing of claims, and business restoration, as well as clean-up through its relationships with third-party vendors.



It will take days, if not weeks, to calculate the physical damage, but Gov. Jeb Bush, for one, was already predicting Frances could easily match the $7 billion toll Charley took on Florida just three weeks ago. When the final assessments are in, the two hurricanes, taken together, could approach the losses of Hurricane Andrew in 1992. The cost of the two storms is mounting. The Insurance Information Institute estimates Charley's insured losses at $7.4 billion. Early estimates of Frances' total range from $2 billion to $10 billion.
The Miami Herald, 9/6/04

The following toll-free number for clients has been established, which will be answered by members of the team: 866-252-7492. Questions regarding property damage can be referred to that number or directed to local Marsh representatives.

Additional key Property Catastrophe team contacts include:

Robert W. O'Brien
Property Catastrophe Team Leader
(804) 344-8961

Ken Giambagno
Forensic Accounting and Claims Services Co-Practice Leader
(212) 345-1063

Kevin McCarthy
Forensic Accounting and Claims Services Co-Practice Leader
(312) 627-6722

Faced with the threat of a storm like Ivan, businesses must take the time to ensure they have the appropriate resources on hand to measure and recover from a potential disaster. By taking anticipatory measures well before the storm hits, organizations will be much better positioned to recuperate from its effects. While the physical safety of employees is always paramount, it is also important to ensure that your organization is prepared to effectively manage the economic impact of a storm. For businesses in Florida in particular, resources will surely be in short supply after the storm hits, so it is best to be prepared in advance so that business operations can be restored as quickly as possible.

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