This has been quite a spring and summer and there doesn’t appear to be any signs of the record breaking weather and natural disasters slowing down. Record heat, tornadoes, flash floods, earthquakes, out of control forest fires, tropical storms and generally unstable weather has been the order of the day. Worst of all we are in the worst months of hurricane season, September and October. In addition to all that, we have experienced the worst oil spill in recorded history with serious long term implications for the environment in the Gulf. The country is in a major recession surpassed only by the Great Depression. We are witnessing record unemployment and home foreclosures. Many college graduates have moved back home because they can’t find a job in their field of study and don’t know how they will pay back their college loans. These are very uncertain financial times for many people.

With finances the way they are, it’s no wonder that clients and prospects are hesitant to discuss buying additional insurance coverage. Agents and brokers resist discussing additional protection because of the increased costs and the anticipated objections. However the potential for serious financial loss due to a lack of coverage is even more devastating in unstable economic times like we are currently experiencing.

That’s why it’s absolutely essential that agents and brokers talk with clients and prospects about how they can protect themselves against weather related damage. Commercial clients also need to plan for the unexpected loss their business would incur if they were unable to operate because of a natural disaster.

When clients and prospects incur serious weather related damage or can’t operate their business because of a natural disaster the first place they turn is to their insurance agent. They ask questions like: “Do I have coverage including flood coverage for the damage I have?” or “Do I have coverage to keep my business going after the storm and more importantly, where will I find the resources necessary to get back up and running as quickly as possible?”

Ask yourself; if you were that agent or broker being asked, what would be your answer and how would you feel if you had to answer no. I don’t know about you but when I was an agent I felt a serious responsibility to be there for my clients when times like this occurred. There is no more unpleasant feeling then having a client find out their loss is not covered. If you haven’t discussed and recommended flood insurance, disaster planning and recovery services with your clients you can expect to feel pretty awful. They are looking at very little chance to financially recover from such a loss. That uncomfortable and embarrassing feeling you experience will be magnified a thousand times if they have had a family member or loved one injured or killed.

After the hurt comes the anger and it’s very possible the next communication you have from your client will be from their lawyer indicating they are suing you for not advising them they didn’t have the coverage and/or not offering them the coverage so they could protect themselves.  Unfortunately when many people are faced with a serious uncovered loss they look for someone to blame and to try and collect from to make themselves whole again. Even if you are defended successfully and released from having to pay anything as a result of the lawsuit no one wants to go through the stress and anguish of an E&O claim.

The flood program has been extended until September 30th, 2010. The House has passed a bill extending the program for 5 years and now awaits the Senate’s approval. There are disaster planning and recovery firms like Agility Recovery Solutions ready and able to help your commercial clients. They’ll assist with the necessary planning and provide the business continuity services to assure your clients weather the storm and are back up and running as soon as possible.

The coverage and programs are available. Make the commitment right now to be your client’s Trusted Advisor. It’s why they purchased their coverage from you in the first place. It’s what makes doing business with an independent agent or broker the best method of purchasing insurance. Will it be easy? NO. Will many clients initially resist buying the coverage? Probably. However, if you’re sincere in your concern for your clients and their well being; if you take the time to explain the coverage and services; if you advise them of the cost and warn them of the enormous financial loss they may incur if they don’t take advantage of what’s offered, you can sleep well and look at yourself in the mirror every morning knowing that you did your job professionally and responsibly. You can be comfortable in the knowledge that you made every effort to inform your client of the risk and offered the best solutions available for handling the potential loss. You can be proud that you acted as their trusted advisor concerned for the financial well being of your client, their family and their business. Don’t wait. Get started right away. The next major storm or disaster could be right around the corner.