Published: June 24, 2011 | Country: United States
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Torrential rains have hit central and southern China this month, with 13 provinces and municipalities affected, including Zhejiang, Hubei, Jiangxi, Guizhou, and Guangdong.
The rains have triggered flooding in areas of Jiangxi and Hunan, affecting over 36 million people and leaving 175 dead. Economic losses are estimated to exceed 35 billion RMB (about US$5 billion), according to statistics.
The event is a reminder for organizations to review their insurance programs to ensure they have up-to-date sum insured valuations, and the right mix of policy cover. It is also important to review and test business continuity management (BCM) plans regularly.
A standard property insurance policy provides cover for floods and mudslides.
Businesses should also consider business interruption and contingent business interruption insurance as part of their insurance programs.
Marsh’s local dedicated claims team and client executives have been mobilized to support our clients in their business recovery. The local teams are supported by our regional and international claims teams, including a team of specialists for large or complex claims. Marsh is also working closely with international and local adjusters to coordinate he response for our clients.
Clients with interests in provinces with potential risks of flooding or mudslide should carefully monitor the progress of the extreme weather situation and ensure BCM plans are in place and ready to be activated.