As I write this article, I’m in a hotel room for the fourth straight day because I have no power. The severe wind and rain storm that occurred on Saturday, March 13, has pounded the tri-state area, and as I’ve been told before, I’m not immune to the damage. The two streets next to mine have power—Go figure. Two hundred dollars a day for a hotel room, and of course, my expenses are not covered by insurance. And, it occurs to me that the National Flood Insurance Plan has designated this week (March 15-19) as National Flood Safety week. At the office, we’ve received almost 400 claims since the storm hit and more are coming in fast.

We have just lived through a major storm that hit the New Jersey, New York and Connecticut coast, and it should serve as a warning shot to all insurance agents, demonstrating what could happen if a hurricane were to hit our area. Agents who do not have an updated catastrophe plan that is in working order should have their heads examined. In this recent catastrophe on this unnamed storm we found the problems that will occur if we get hit by a major hurricane or crisis. The calls and e-mails come flooding in (excuse the pun) and there’s just so many people you can speak to at any one time. So, the voicemails and e-mails back up, and the worst part is that the clients we spoke to in the morning are re-calling in the afternoon to find out why the adjusters have not arrived yet.

Our staff worked in a professional, welltuned manner and I know we have our act together, but every act needs tweaking. And, now we are in the process of improving our plan for future catastrophes. People who answer our agency phones should know answers to coverage questions. For example: The power goes out due to a problem two blocks away, the homeowner has no coverage; The tree is lying in my backyard, who is responsible? A tree is on my house, how do I settle the claim? The power lines are down three blocks away, but I have no damage to my house, is my necessary hotel stay covered? I could go on and on with questions and answers, but I think you get the point. And, of course, every claim is a priority to the individual placing it, as it should be. The first claim I received: A giant oak tree fell through the center of a house— to me that’s a priority; the next claim was from an elderly gentleman whose roof was dripping. He asked us to have an adjuster visit the same day. You learn to triage claims as you put them in to the carriers and I am sure that the companies are using similar triage techniques to dispatch adjusters. At the same time, when taking claims information, we are taking both home and cell phone numbers, because power outages are affecting phones as well.

Despite the inconvenience and extra work, I thank God this storm was not declared a hurricane, rather just a windstorm. Otherwise, all hell would be breaking loose right now: We’d be trying to explain to our clients why they have various deductibles, $20,000 for one carrier; $10,000 for another; and yet $30,000 for another. At the time of a loss, clients have very short memories; they’ll forget our discussions about premium and ask “Why did you sell me this coverage?” It would be an errors and omissions nightmare! This storm was our warning sign; what more signal do we need to prove our industry needs a uniform trigger? Let’s hope the insurance department finally recognizes this need and listens to PIANY, which has supported industry-standard coverage for homeowners who obtain coverage through the state’s Coastal Market Assistance Program for some time. While our association is working in Albany toward this end, it has developed tools I recommend every agency put to use. On the PIANY Web site, members have access to both a Flood Tool Kit, which includes information for properly advising clients and marketing and retention hints; and an Agency Preparedness and Recovery Plan, a guide to creating an agency-specific business contingency plan in case of a disaster. Those of us who made use of it recognize the value of this tool.

Many agency principals put a disaster contingency plan on the back burner so they can deal with the more immediate jobs of running an agency, such as sales and service. The main mission of any insurance agency is to provide service to their clients. But, this means assisting clients no matter what the circumstances the agency faces, as well as handling the day-to-day workings of the agency. The initial investment of time you make will more than pay for itself in the event of a disaster, saving you clients, income and major frustration.