A troubled outlook for the 2010 Hurricane Season
The Atlantic Hurricane season officially started on 1 June. The National Oceanic and Atmospheric Administration (NOAA)'s seasonal outlook predicts a 70% probability that 14 to 23 named storms will form in the Atlantic Basin during the six-month season and of these, the NOAA predicts that three to seven could be "major hurricanes". If borne out, this year could be one of the most active seasons since 2005.
Major hurricanes pack sustained winds of at least 111 mph, which can increase to speeds of more than 155 mph. Hurricane Katrina hit New Orleans in August 2005 with winds blowing up to 130 mph, causing the catastrophic failure of the New Orleans levee system and leading to unprecedented levels of destruction.
Insurers and reinsurers who have already been hit with the unusually severe natural windstorm Xynthia in Europe are particularly concerned, as one more major disaster could potentially push the industry into the red.
If you have any queries regarding whether your insurance policies cover the risk of hurricane or what you can do to reduce the impact that a hurricane could have on your business, please contact your Bartlett representative today.