Recent earthquakes highlight need for disaster planning
Natural disasters are an ongoing threat for which brokers and their clients need to be prepared at all times.
During the first three months of 2020, the continental United States experienced five earthquakes measuring magnitude 5 or more, according to the U.S. Geological Survey (USGS). These include a magnitude 5.7 earthquake that struck outside Salt Lake City on March 18, and, 13 days later, a magnitude 6.5 quake 80 miles northeast of Boise, Idaho.
At magnitude 6.5, the Idaho quake was the first of the year categorized as “strong” by the USGS, and it shook about six times more violently than the one near Salt Lake City. Fortunately, there were no reports of serious damage or injury because it was centered in a sparsely populated area, but the quake was the most powerful to strike Idaho since 1983.
Coming in the midst of the COVID-19 outbreak, which has already taken tens of thousands of lives and caused a sudden and massive disruption to the way we work and live, these quakes, especially the strong Idaho event, are important reminders that natural disasters are an ongoing threat for which we need to be prepared at all times.
For insurance agents and brokers, this is a good time to reach out to clients with a reminder about having catastrophe response plans for their families. Given the economic impact of the pandemic on many families, this may also be the ideal moment to help them recognize the need for earthquake coverage in many parts of the country. Insurance product marketing aside, communicating about the importance of disaster plans can help keep clients safe and build goodwill in the community.
Disaster planning
When reaching out to clients, discuss both the importance of disaster planning and at least some of the details of what is essential. It’s important to remind them that earthquakes and other natural disasters can happen without warning and result in significant injuries, loss of life and damage to property. Earthquakes, for example, destroy buildings and roads, topple bridges and cause fires, explosions, tsunamis, landslides and avalanches.
With this in mind, a disaster plan should have several important components. For earthquakes, it should include steps to follow in the event of a quake, focusing on the recommended “Drop, Cover, and Hold On” protocol. People need specific guidelines for different locations: home, in a car or outdoors.
People in earthquake-prone areas can also protect themselves and their property by securing heavy items in their homes such as bookcases, refrigerators, televisions and anything hung on the wall. This not only protects family members from having heavy objects fall on them, but it also reduces property damage. In addition, those with natural gas should know how to shut off gas lines to the home quickly to prevent an explosion and fire. Very often, homeowners and small businesses do not have the unique key/wrench needed to turn off the gas at the meter; the time to make that purchase is now.
Next, people should prepare and maintain an emergency kit with supplies to last 72 hours. These “72-hour kits” should contain food and water, extra shoes and clothes, blankets, flashlights, batteries, a fire extinguisher, cell phone chargers and a whistle. Consider each person’s specific needs, including medication, and include food for the family pets. These kits should be kept near your designated exit and should be updated annually or at least every two years.
Finally, families can prepare an emergency communications plan and make it available to everyone, whether they are home or not. This plan should have contact information, emergency hotlines and an out-of-state contact that everyone will use to connect with loved ones after the event. It is also very important to designate a location at which to meet in the event they are separated.
When communicating with clients, agents and brokers can find easy-to-use resources at the Department of Homeland Security’s ready.gov website.
The time is right
Along with the tragic loss of life and economic disruption, the current pandemic may also have heightened Americans’ awareness of the need to plan for the unexpected. The time certainly seems right to reach out to clients about disaster planning in the event of an earthquake or other natural disaster.
Long after a vaccine and treatment for COVID-19 are created, earthquakes, wildfires, hurricanes, floods, tornadoes and landslides still will be with us. Agents and brokers should make sure their clients are prepared.
Craig Poulton is chief executive officer of Salt Lake City-based Poulton Associates, LLC, which administers various catastrophe related insurance products, including the country’s largest private flood insurance program, the Natural Catastrophe Insurance Program at CATcoverage.com. Follow him on Twitter @nciptweets. The opinions expressed here are the author’s own.
More from this author: