The Most Expensive Insurance Claims in History!

Insurance is everyone’s safety net, but some claims can be so massive – that they can shake industries. Here are a few eye-opening insurance claims that highlight the dangers of underinsurance and missing coverage: 

1) The 2011 Earthquake and Tsunami in Japan  

We all know of the deadly earthquake that struck Japan in 2011, followed by a tsunami – the consequences and damages were unfathomable, reaching over $360 Billion in damages. With many lives lost, this tragedy was one of the most expensive natural disasters in history. 

Since Japan is an industrial area, the majority of automotive and electronics companies suffered severe losses. It wasn’t just the insurance market that absorbed the damage, but global businesses also felt the impact of the disruption in the supply chains. 

2) The Deepwater Horizon Oil Spill

The British Petroleum Deepwater Horizon drilling rig is another disaster that many still talk about. In 2010, a massive blowout in the Gulf of Mexico led to the largest marine oil spill in history. This led to a drastic loss of billions of dollars with severe damage to both, the economy and the environment. Claims faced by British Petroleum totaled over $65 Billion, including fines, lawsuits, and environmental cleanup costs.  

3) Hurricane Katrina

Hurricane Katrina struck the Gulf Coast in mid-2005 – resulting in being particularly disastrous for New Orleans. The storm and the resulting flooding led to an insurance claim of about $125 billion including homes, businesses, infrastructure, and public properties.  

Businesses severely suffered due to this interruption as the majority of properties were damaged – in fact, companies were underinsured and did not have sufficient coverage to cover the losses. The majority did not even have flood insurance and were not covered at all, as the majority were not aware that flood insurance is sold separately from general property insurance, and therefore, suffered much more.  

But.. Are You At Risk? 

I mean.. It depends! Are you aware of the risks you are surrounded with – AND, have you purchased adequate insurance for it? While these are extraordinary claims – but they did happen. When it comes to business, it’s best to be prepared for the worst and plan. Here’s what you need to do:  

• Review Your Coverage – Is it sufficient according to the risks you are surrounded with? 
• Understanding Exclusions – Ensure you clearly understand what is, and isn’t included in your policy.  
• Personalized Insurance – Purchase insurance that fits you right, adjusted exactly according to your needs.  
• Invest Smart – Consider gaining knowledge regarding Business Interruption Insurance and continue making that smart investment, it helps massively in time of need.  

One thing’s for sure – while Insurance cannot prevent these disasters, it can surely help you survive downtime. Make wise decisions for your business, today.  

For expert advice, contact Shayne Bevilacqua at Professional Liability Insurance Group.  
Call or Text us at +1 (877) PLIG – 123, That’s (877) 754 – 4123.