What does Catastrophe Mean to You?
If I asked you to give me an example of a catastrophe, most people’s minds would immediately turn to an earthquake, tornado, or a major fire that destroys an entire neighborhood. Those are definite catastrophes that can affect large numbers of people. But what if I asked you more directly, what would rock your world enough to be considered a personal catastrophe? Those answers can be much more varied and subjective.
On the lighter end, I know in my house a small catastrophe is when we run out of milk, because my four sons go through at least a half-gallon a day and it is a fuel that keeps our family running smoothly. Also, if I had a small fire that left most of my house intact, but destroyed a precious family heirloom, that would feel like a pretty big catastrophe to me.
In the business world, as in the personal world, what defines a catastrophe for a very large corporation running global operations will feel different than what would completely disrupt daily business for a local shop. So how do you prepare for catastrophes — whatever your size?
Insuring against catastrophes?
If you’re like most people, you almost never think about insurance. Sure, the media is full of insurance ads, and your business and personal insurer probably sends you lots of mail. But when is the last time you really focused on any of it? That’s right: when you had a catastrophe. That is when it really matters.
The only reason most businesses purchase insurance (other than mandated requirements) is that they have carefully considered the what if scenarios — see, without realizing it, they have defined their catastrophes. Whether it be a major flood because they are located near a river, or a large-scale environmental accident because they haul chemicals; catastrophic events both natural and man-made can bring business to a halt.
It’s unfortunate that we can’t actually get insurance to protect us from running out of milk at home, but the reality is so many of the catastrophic examples that can negatively affect a business CAN be insured against, lessening the ultimate impact it has on the bottom line.
Fitting your insurance coverage to your actual risk profile — and the catastrophes that could most adversely affect your business — is the right thing to do. The insurance market continues to evolve daily offering new and enhanced coverages that can address all types of exposures. Available coverages range from business interruption and property and casualty coverage to your company’s health care plan. But how do you know what else is available and appropriate to address YOUR potential catastrophes? That’s where we can help. When we get to know our clients and take a thorough look at their operations, their goals, and what matters to them, we narrow down the type and amount of coverage that will protect them from their catastrophes – big and small.
As famous writer and biochemist Isaac Asimov said “…although problems and catastrophes may be inevitable, solutions are not.”
Let’s get started with your solutions.