Earlier this year, we discussed the importance of Difference in Conditions (DIC) Insurance coverage, a policy available through one of our MGA partners, Vikco Insurance Services, LLC This insurance coverage broadens an employer’s policy by providing them with additional limits of coverage for specific perils, especially earthquakes. This being said, how can employers decide if they are at a higher risk than other businesses? The following are various factors that will help determine a company’s risks of damage from an earthquake peril.
Building Design and Construction
The structural integrity of a building is dependent on many factors, what year the structure was built, the building codes used, the building shape and materials, structural frames, and their inter-connections. In order to determine specific risks, it’s important for employers to consult with a structural engineer. Major changes to a building’s structure are often unrealistic, however disastersafety.org provides a detailed list of possible non-structural retrofits that could be effective in maintaining the functionality of a building during earthquakes.
Data Management System
Earthquakes don’t just have the potential to damage the structure itself; they could do significant damage to information and information technology within a business. Experts recommend having everything digital regularly backed up and stored either through a cloud or Google drive service, or at an alternative location. IBHS recommends meeting with IT specialists and engineers in the company’s area to determine a solution that will best fit their needs.
Fire Protection Procedures
Fire following earthquakes could create, and has created, loss of life and even economic damage more severe than the damage from the earthquake itself. As such, it’s imperative to have fire safety equipment in place; a sprinkler system, a fire extinguisher, and smoke alarms in areas that don’t have a lot of foot traffic (storage closets, break-rooms, etc.). Another preventive measure employers should take to prevent fire or fire damage is properly securing gas and propane lines, as well as light fixtures.
The above mentioned methods are just a few safety tips that employers could follow to potentially reduce their earthquake damage risks. Employers should remember, as well, that no matter what they do to prevent damage, earthquakes are unpredictable. For this reason it’s imperative that they be well-equipped with the appropriate DIC policy.
To learn more about Vikco Insurance Services, LLC and the products they offer, please contact Brian Thomas Cindric at 925.678.2103.
K2 Insurance Services, LLC was formed by two insurance industry veterans with the purpose of acquiring managing general agents and developing multi-line programs. Our goal is to distribute innovative products through retail and wholesale distribution channels. To learn more about our services and partners, please contact us today at (855) 976-8113 or visit K2INS.COM.