General Insurance Article - Significant property and business damage due to Sandy

 Aon plc has issued the following statement from Al Tobin, managing principal of Aon Risk Solutions’ Property Practice. Aon Risk Solutions is the global risk management business of Aon.

 “In the immediate aftermath of Hurricane Sandy, it is evident that the area surrounding New York City and the New Jersey coast have been particularly hard hit, but the damage extends far beyond the East coast. We expect flooding due to rain and storm surge to cause substantial losses. We also expect direct property damage, power outages, blocked buildings and civil authority to cause large business interruption losses.

 “Most commercial policies provide flood coverage; however, some policies contain specific language limiting or even excluding coverage in flood-susceptible areas. All organizations should review their existing policies immediately.

 “Aon is working diligently with carriers to obtain commitments that renewals, extensions and general policy matters are not affected in this undoubtedly busy time for clients, both personally and professionally.”