Companies with flood insurance whose policies were wiped out by
superstorm Sandy will be able to buy extra flood cover under a
new program insurance broker Aon PLC launched on
Flood Secure, backed by the Lloyd's of London
insurance market, is not intended to backstop companies for
Sandy-related losses. Instead, it is designed to provide
companies insurance for future flood events if they have already
reached the coverage limits in their policies due to Sandy.
Sandy caused up to $20 billion in insured losses, according
to industry estimates, making it one of the worst catastrophes
in history. A number of companies have been displaced from their
offices indefinitely, and many have also had their business
interrupted by storm-related closures and supply delays.
Aon said the new platform was not a replacement for coverage
from the Federal Emergency Management Agency's National Flood
Insurance Program. Many businesses take out coverage from
private insurers with broader coverage and higher limits than
that offered by the government program.
"While organizations may be unsure how their insurance flood
limits will be impacted at this time, the facility is here to
help ease that concern and provide another option for future
coverage," Rick Miller, a senior executive in Aon's U.S.
property insurance practice, said in a statement.