Some examples of recent hurricanes and their costly results (according to the National Hurricane. Center) in the U.S. in
Hurricane Preparedness TAKING THE WIND OUT OF HURRICANE DAMAGE The National Hurricane Center is predicting a higher than normal season in 2017, expecting 14 named storms, seven hurricanes, and three Category 3 or higher storms. The National Weather Service defines a hurricane as a storm with pronounced rotary circulation and sustained winds exceeding 74 mph, normally accompanied by torrential rains and flooding. Hurricanes also sometimes spawn tornadoes. Do not underestimate the damage of flooding, wind, and storm surge from a hurricane or tropical storm. Hurricanes are categorized as follows: HURRICANE CATEGORY
WIND SPEEDS (MPH)
SUMMARY OF DAMAGES
Category 1
74-95 Very dangerous winds will produce some damage
Category 2
96-110 Extremely dangerous winds causing extensive damage
Category 3
111-130
Devastating damage may occur
Category 4
131-155
Catastrophic damage will occur
Category 5
156 plus
Catastrophic damage will occur
Some examples of recent hurricanes and their costly results (according to the National Hurricane Center) in the U.S. include: 2005
Hurricane Wilma
Cat. 3
Resulting in loss of $168 B and 22 deaths
2005
Hurricane Rita
Cat. 5
Resulting in loss of $10 B and 2 deaths
2005
Hurricane Katrina
Cat. 5
Resulting in loss of $75 B and 1200 deaths
2004
Hurricane Jeanne
Cat. 3
Resulting in loss of $6.9 B
2004
Hurricane Frances
Cat. 4
Resulting in loss of $8.9 B and 8 deaths
2004
Hurricane Charley
Cat. 4
Resulting in loss of $15 B
Create an emergency response team
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Hurricanes have one interesting characteristic that makes them different from tornadoes, earthquakes, firestorms, and even most floods—they are forecast days in advance, allowing businesses time to prepare for their arrivals. To help our clients make the most of the time before a hurricane strikes, we have developed this damage mitigation plan, which can be modified and adopted for any facility. The single most important action you can take to prepare for a hurricane is to implement a plan now. Your success in weathering a hurricane depends on the actions you take today. Hurricane season runs from June through November. To prepare for it, develop a detailed emergency action plan that addresses the three critical times when damage control measures need to be taken: before a hurricane arrives, during the storm, and after it has passed. Once the written plan is complete, review and update it every six months. During the year, your organization may acquire new locations, purchase new equipment, increase your stock, or build an addition, any of which can alter your exposure to storm damage and necessitate changes to your preparedness plan.
Who Should Create and Carry Out the Plan? Create an emergency response team from your own employees. This team should be led by an emergency coordinator who should have technical expertise about your organization. The emergency coordinator should be given authority to supervise all employee groups involved in emergency activities—from planning to recovery.
CREATING YOUR PLAN Step 1: Your information base puts you ahead. Right now is the time to create a plan for your operation. Your initial goal is to build an information base about your facility and resources. The following list covers information gathering activities to be completed. Depending upon your business, you may identify others needed for your facilities. • Conduct a risk assessment of your facilities and operations • Identify all areas critical to your operation, production, or facility. Which could be most easily damaged from a hurricane and make it difficult to return to normal operation? Has your site experienced wind or flood damage in the past? Are you in a flood zone? Designate these areas as needing special attention in your plan. • Review the entire operation, including processing equipment, data processing, and stock storage areas. What should be moved, secured, or protected before a hurricane makes landfall? • Get in touch now with machinery, electrical, data, and other recovery contractors. Set up procedures for hiring them after a storm to make repairs. • Know where you can get backup communication equipment, power generators, and pumps. Make arrangements now for how you’ll get them if needed. • Arrange for protection or relocation of vital company records. Will you use outside vendors? Identify who they are and how to contact them. (Include backups for computer files and get server protection). • Identify and list alternative suppliers of critical materials and services. These should be located away from hurricane prone areas. • Ensure that all your company vehicles have full tanks of fuel and can be moved to higher ground if needed. • Order and stock emergency supplies. Secure enough waterproof tarpaulins and plastic covers to cover all important equipment. Make arrangements to acquire sandbags when the need arises. Keep a record of what is on hand and where it is stored. Determine what is needed and where to get it.
Estimate the amount of time needed to perform all essential tasks if a storm approaches
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• Obtain telephone numbers and contact names of key agencies. Talk to the National Guard, your fire and police departments, and city and county governments to find out how to contact and interact with them during and right after a storm. • Talk to your utility companies. What actions do they recommend if a hurricane hits? What should you expect from them, and they from you, once the storm passes? • Locate two or three other sites away from hurricane areas, where you can possibly move your essential business operations should your primary site be damaged by the hurricane. How do you access them? • Secure an insurance check-up. Contact your Crystal & Company account executive to make sure you have enough coverage (wind and flood) to repair or replace damaged property and get your business back in operation in a timely manner. Review any changes in property, equipment, or operations that may have an impact on your insurance coverages. • Choose a base area within your facility from which your response team can operate when a storm is threatening the area. Stock it with:
º Radios and extra batteries º Rain gear º Two-way radios or cellular phones º Duct tape º Camera, film, and memory cards º Plastic sheets (heavy gage) º Floor plan of the facility º Rope º Emergency lighting º Plywood (2x4 studs) º First aid supplies º Nails and hammers º Drinking water and non-perishable foods º Stocked tool kit
• Determine appropriate protection for all exposed glass. Metal storm shutters and plywood (at least ¾ inch thick) are two possible protection methods. Materials are often in short supply prior to and soon after a storm. Have the material on hand now or make arrangements to acquire it when needed. List what you will need and how to get more. Consider replacing glass with impact glass with ratings to withstand 140 mph winds. • Arrange for temporary security that you might need to protect your premises before, during, and after the storm. Investigate your options now, such as fences or security guards. Make arrangements for the method that is most cost-effective for your specific operation.
Step 2: Comprehensive checklists get you ready. The next major task is to develop a detailed checklist to use when a hurricane has been identified by the National Weather Service (see the sample included at the end of this bulletin). Estimate the amount of time you'll need to perform all essential tasks if a storm actually approaches, remembering that things never go quite as planned—do not underestimate. The person(s) responsible for completion of the tasks should have copies of the checklists. During an impending storm, team members are expected to follow their portions of the list and report completion to the emergency coordinator. Consider having an overall list for the coordinator and separate checklists for specific activities, such as shutting down equipment and utilities.
Many companies activate their plan when a hurricane watch is announced
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Step 3: Test your plan. The emergency coordinator should ensure the emergency plan is tested and meets the following objectives: • The procedures are complete and workable. • The information, equipment, and materials are available to perform alternative processing for critical operations. • The business applications, files, records, and equipment can be restored.
Step 4: Know when to activate your plan. Because the path and severity of hurricanes is difficult to predict you want to be in the best possible position to mitigate damage. When creating your checklist, you should also develop a policy on how and when your company will decide to activate its plan. Your action timing will depend in part on the time you estimated will be required for your preparation activities. Once the National Weather Service has identified hurricane conditions or the presence of hurricane, the emergency coordinator should monitor the status and movement of the storm. Many companies activate their plan when a hurricane watch is announced. The National Weather Service announces four levels of windstorm alerts: tropical storm watch, tropical storm warning, hurricane watch, and hurricane warning, which are defined as follows: • Tropical storm watch – Tropical storm conditions with sustained winds from 39-74 mph are possible in your area within the next 36 hours. • Tropical storm warning – Tropical storm conditions are expected in your area within the next 24 hours. • Hurricane watch – Hurricane conditions with sustained winds of 74 mph or greater are possible in your area within the next 36 hours. This watch should trigger your organization’s disaster plan, and protective measures should be initiated. • Hurricane warning – Hurricane conditions are expected in your area within 24 hours. Once this warning has been issued, you should be in the process of completing protective actions.
Step 5: The hurricane is coming. Decide. Act. Once the decision to take action is made, the checklists created during the planning process should be followed with accuracy and speed. The emergency coordinator should assume full authority for the process.
Step 6: During the hurricane: follow the plan and stay safe. Whether it is advisable for an emergency crew to remain at the property during the storm is a call only your business can make and it is a call that should not be taken lightly. Only the civil authorities can give you an idea of the storm intensity and danger. Concern for personal safety must take priority over concern for protecting property. In the event people remain onsite, there must always be two or more who stay, never should any one employee remain at the site alone. If people remain on site, the following suggestions may be useful: • Establish headquarters in a designated area. • Stay inside during the storm unless emergency repairs are necessary. Be aware of the eye of the storm, which is only a temporary calm. • Use flashlights rather than candles or kerosene lanterns. • Be alert and prepared for flooding. • During power failure, turn off electrical switches to prevent reactivation before necessary checks are made.
Once initial repairs and reviews have been done, efforts to return the business to operating capacity can begin in full
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Step 7: Prevent further damages and make repairs after the storm.
HE AD QUART ERS
Once the storm has subsided, your emergency crew can begin damage control. The most important step is to prevent further damage, even before any losses are reported to your insurance broker. Secure the site as quickly as possible, document the loss, and use common sense as a business operator to start the recovery. There is no need to wait for the insurance company claim adjuster to arrive to begin temporary repairs. Once initial reviews and repairs have been done, efforts to return the business to operating capacity can begin.
Crystal & Company
Having an emergency response plan in place will help your efforts. Such a plan should include many or most of the following and can be started before your insurance broker or insurance company has been to your site: • Notify your insurance account executive or claim manager of your loss, so claim reporting and adjustment can begin with your insurance company.
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• Survey the site for damage, determine priorities, identify hazards, and take actions to reduce these hazards.
Houston
• Evacuate the premises if dangerous conditions exist or major structural damage is suspected. Contact authorities as necessary.
Newport Beach
Los Angeles Miami Palm Beach
• Report any broken gas lines or downed power lines. Immediately leave these areas safely.
Philadelphia
• Call key management personnel.
San Antonio
• Determine where FEMA and local emergency authorities have established “relief centers” with water and meals ready to eat (MREs), so any of your employees who have been affected by the storm can obtain assistance as needed.
San Francisco
Portland
• Cover broken windows and openings in the roof. • Check drainage systems to ensure they are free of debris. • Notify contractors so that repair can begin. Assess and document damage: 1. Maintain a detailed log of damage for insurance purposes. 2. Take photos or videos of damaged areas. 3. Temporary repairs may begin as long as damage has been documented. 4. D amaged goods and building materials should remain protected onsite until released by the claim representative.
Crystal & Company is the home for talented insurance professionals: creative, committed to their clients and driven to deliver extraordinary results. The company drives the strategy and execution behind insurance and employee benefits programs for businesses that want to be smart about risk. Crystal & Company is the insurance brokerage of choice for leading financial institutions, corporations and nonprofit organizations. Headquartered in New York City, the firm has 11 offices throughout the United States and is a founding partner of Brokerslink, a global alliance of independent insurance brokerages with members in more than 95 countries around the world.
The emergency plan you develop can help you prepare for the consequences brought on by a storm
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HURRICANE PREPARATION CHECKLIST Modify this checklist to reflect your operation. You may want to have separate lists for important activities, such as shutting down machinery or power. Person responsible
Time to Activity complete
Completed/ When
Alert emergency response team members. Shut down the following processes and operations. (Develop separate checklists for these, such as electrical equipment, machinery, heating equipment, etc). Assemble damage control supplies and equipment, and store them in a secure area. : Portable pumps, generators, hose, mop, rolled fencing, lumber nails, tarpaulins, plywood, sandbags, shovels, axes, camera, memory cards, power tools, hand tools, etc. Protect or relocate vital company records. Anchor or relocate items in the yard that are subject to damage from high winds, rain, or flooding waters. Drain open tanks of hazardous materials; move storage drums to a secure location (never inside the facility); and shut off and drain any supply lines. Isolate any chemicals that can react violently. Inspect the roof, gutters, flashing, and drains and make any necessary repairs. Strap or anchor to the roof structure (e.g., the joists) all roof-mounted equipment such as HVAC units, exhaust vents, communication devices, etc. Ensure that all ground tanks are filled to capacity with water or product and are secure from wind damage. Check the position of vent line on underground tanks to ensure it is above anticipated storm surge level. Install pre-fitted plywood or metal storm shutters on glass windows/doors/skylights to protect against flying debris and winds. Relocate or cover inventories near window, door, and skylight openings. Assemble supplies for the Emergency Response Team. Verify that all fire protection equipment is in service. Inspect all drains and catch basins; insure they are free from debris. Cover sensitive equipment, such as computers in stock, with tarpaulins or waterproof covers. Move goods and critical equipment off the floor. Turn off gas supply and nonessential electrical equipment.
This checklist is an insurance-related summary prepared for your convenience. It is intended to neither replace or amend any particular insurance policy nor does it constitute a contract, legal advice or tax advice.
