HURRICANES PROVE COMMERCIAL INSURANCE’S VALUE:

Business owners who debate the need for insurance coverage have learned an invaluable lesson from hurricanes Charley and Frances, according to the Property Casualty Insurers Association of America (PCI). In the aftermath of Hurricane Charley, 135,000 commercial insurance claims were filed by businesses in Florida and the southeast, accounting for $2.7 billion, or 40 percent of the estimated $6.755 billion in total damages from the storm. While claims estimates are not yet available for Frances, PCI expects a larger number of claims but a smaller dollar value for those losses. “Comercial insurance has played a vital role in helping businesses that have suffered damage from the hurricanes,” said John Eager, PCI’s senior director of claims. “About one in every five claims from Charley was a commercial claim and business losses accounted for 40 percent of the damages in dollars. Commercial insurance accounted for more than $12.5 billion in premiums in Florida in 2003. That’s more than the premiums paid for either homeowners insurance or auto insurance.