Fortunately, Hurricane Earl has been downgraded to a Category 3 storm. This bodes well for it continuing to lose strength quickly as it heads north, but it doesn’t mean the Carolinas nor Cape Cod is out of the woods by any means.
That should be easy to remember based on this latest satellite image of the expansive Earl. Stay ready, everyone. (via NOAA … click here for larger version)
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If a company is making money by using your (insert body part here) in their advertising campaigns, chances are, they want to protect that lucrative asset. And if you rely on a certain body part just to maintain your full-time (and probably very well paying) job, it may be wise to consider a policy as well.
That’s where the world’s most unusual insurance policies come into play. Take Troy Polamalu for example. The Pittsburgh Steelers strong safety hasn’t cut his mane in a decade out of devotion to his Samoan ancestors. His flocks landed him an endorsement deal with Head & Shoulders and as a risk management measure, the company, just this week, took out a $1 million policy on his hair. But that’s not the only oddly insured part of the body that has caught the attention of the media.
David Beckham, the hunky English soccer star, wanted to protect that which he uses to make millions as a footballer. With that in mind, he took out a $195 million deal to protect not only his legs, feet and toes, but also his face in the event of disfigurement (since he uses his good looks to score endorsement deals).
Jeff Beck, an iconic English rock guitarist, was ranked 14th in Rolling Stone Magazine’s list of the “100 Greatest Guitarists of all Time.” To protect his famed fingers, Beck took out an insurance policy of $1 million — per finger. Apparently, he came to realize he needed protection after slicing off the tip of his index finger while slicing carrots. Maybe he’ll hire a chef as an additional risk management measure.
Bruce Springsteen has a million dollar voice — literally. The New Jersey-bred crooner insured his voice with the Lloyd’s of London for $6 million. Keep on rockin’ Bruce.
To see the entire list of the “Top 10 Oddly Insured Body Parts,” published by Time, click here.
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CNN has a good breakdown of of Earl’s likely path. Cape Hatteras and other areas on the Carolinas’ coast have the most to fear as the storm may still have Category 4-force winds (131-155 mph) as it nears their shore. New York’s Long Island should likely be spared a direct blow, but Cape Cod may very well have to deal with a Category 2 storm arriving late Friday night/early Saturday morning.
The trajectory also doesn’t bode well for good weather this weekend on the coast of Maine, which is a particular bummer for me since I will be up there trying to enjoy the best state in America for the next few days. (I grew up there.) Ultimately, however, I won’t mind too much as long as the storm brings only heavy rains and winds and doesn’t become a swift-moving Category 2 hurricane that makes it much further north than it should.
UPDATE: And in case any of you still aren’t taking this storm seriously, here’s something that should make you take notice about the enormity of Earl’s reach.
Earl covers about 166,000 square miles — larger than California, which covers just under 160,000 square miles. The storm’s outflow, or the clouds associated with it, could stretch from one end of the state of Texas to the other, said CNN meteorologist Reynolds Wolf.
That’s a lot of wind.
(via CNN)
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The seventh annual National Preparedness Month (NPM) begins today. Launched by FEMA, the month-long awareness program is designed to encourage Americans to prepare for emergencies in their homes, businesses and communities. With that in mind, I took the liberty of contacting Brian Smith with American Express OPEN. He is an expert on commercial risk management and the InsuranceEdge advisor for the company. With a focus on business insurance, I presented him with a few questions. (If you should have any feedback on this Q&A, please feel free to leave a comment.)
What’s the best type of insurance to cover businesses against disasters?
Brian Smith: There are two areas of coverage that must be considered when facing the decision to purchase business insurance: property and business interruption. Property insurance will protect against damage to the physical condition of the business along with the items that sustain operations, such as equipment and fixtures. Property insurance is a mainstay in commercial programs, oftentimes required and rarely overlooked. Business interruption insurance, however, is often undervalued; it is the most critical program needed to sustain operations during a disaster. There are seven points a business owner should consider if questioning the need for business interruption coverage:
Do different types of companies require different types of insurance and does the business’ location matter in such a decision?
BS: Each company will have its own unique risks associated with it. These must be evaluated by a commercial insurance professional to determine the right coverage for the identified exposures. Taking into consideration the location of a business, however, is one of the key factors. Distance from the coast is one factor, due to exposure to natural disasters such as hurricane and flood. In this case, flood is highly recommended and may be required based on banking terms or contractual needs. An additional type of coverage within the business interruption arena is contingent business interruption. This type of insurance protects the business against a loss due to a dependency on one buyer, supplier, manufacturer or leader property such as in a mall or shopping plaza.
Is now a good time to reassess commercial insurance coverage? If so, why?
BS: The answer here is a resounding YES! Commercial insurance rates are very low at this point. The insurance industry is facing its sixth year of a “soft market,” where insurance companies have lowered rates to unprecedented levels. Insurance program development during this time is highly recommended due to opportunities involving greater coverage, competitive rates and new client demands on both the insurance companies and insurance agencies. Engaging a commercial insurance professional is the best way to see where improvements can and should be made based on operation, location and physical hazards.
Is National Preparedness Month a tool to encourage businesses to analyze their stage of disaster preparedness? How?
BS: I believe it is. The U.S. Department of Homeland Security is shepherding this program at the state and national level. Accompanied by several commercial and personal insurance providers/groups, this national marketing campaign can bring a level of awareness needed for home and business exposures. Coinciding the hurricane season, any awareness program that brings to light what needs to be considered in the event of disaster is always welcome.
What else should businesses know about the importance of being covered from disaster?
BS: Business owners should be aware of the possibility that current insurance programs may be under-estimated or inadequate. A comprehensive review of key items identifying areas of exposure should be considered on an annual basis. Review of current insurance policies is necessary to ensure coverage levels are accurate as well as appropriate. New or changing business operations can have a substantial impact on the monetary needs of a company should it be impacted by a natural disaster. Insuring these exposures properly can only be done if each is understood by the owner and insurance agent and steps are taken to include these values on the current or renewing program.
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