National Flood Insurance Program Interest on the Rise after Sandy

  National Flood Insurance Program Interest on the Rise after Sandy

Business Wire

NEW YORK -- November 15, 2012

Interest among businesses in purchasing flood insurance coverage from the
National Flood Insurance Program (NFIP) is increasing in the wake of
Superstorm Sandy’s heavy rain, record storm surge, and resulting widespread
flood damage, according to Marsh.

Although most companies purchase commercial flood insurance through the
private market, more are now inquiring about purchasing additional coverage
through the NFIP. When used in tandem, NFIP coverage can mitigate or “buy
down” large deductibles associated with commercial flood policies or simply
provide additional coverage.

Under the NFIP, non-residential businesses can purchase up to $500,000 in
building and $500,000 in content coverage, while residential businesses can
purchase up to $250,000 in building and $100,000 in content coverage. Marsh’s
Flood Service Center can place up to $30 million in excess of NFIP flood
insurance, including business interruption, with A-rated insurance capacity.

“NFIP coverage and commercial flood insurance policies are complementary in
that they can be structured to work in concert with one another,” said Duncan
Ellis, Marsh’s US Property Practice Leader. “That said, many businesses rely
solely on the commercial marketplace and do not purchase additional coverage
through the NFIP, despite the widespread availability and relatively
inexpensive cost. Given the massive flooding from Sandy, businesses appear to
be re-thinking their approach to flood coverage.”

“We are seeing an uptick in the number of calls inquiring about NFIP coverage
since the storm,” said Patrice Collingwood, leader of Marsh’s Flood Service
Center, which specializes in placing NFIP coverage. “By purchasing NFIP
coverage in addition to commercial flood, companies impacted by a flooding
event can direct moneys that would otherwise be set aside to pay for
deductibles toward other recovery efforts.”

About Marsh

Marsh, a global leader in insurance broking and risk management, teams with
its clients to define, design, and deliver innovative industry-specific
solutions that help them protect their future and thrive. It has approximately
26,000 colleagues who collaborate to provide advice and transactional
capabilities to clients in over 100 countries. Marsh is a wholly owned
subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global team of
professional services companies offering clients advice and solutions in the
areas of risk, strategy and human capital. With 53,000 employees worldwide and
annual revenue exceeding $11 billion, Marsh & McLennan Companies is also the
parent company of Guy Carpenter, a global leader in providing risk and
reinsurance intermediary services; Mercer, a global leader inhuman resource
consulting and related services; and Oliver Wyman, a global leader in
management consulting. Follow Marsh on Twitter @Marsh_Inc.

Contact:

Marsh
Sally Roberts, +1-303-952-9453
sally.roberts@marsh.com
or
Anand Poola, +1-212-345-4292
anand.poola@marsh.com
 
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