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Every $1 spent on hurricane protection saves $105: FM Global

20th July 2018 - Author: Charlie Wood

Commercial and industrial property insurer FM Global has calculated that for every $1 spent on hurricane protection, businesses reduce loss exposure by an average of $105.

SavingsThe insurer analysed data on 1,800 client organisations for the past decade, tallying an estimate for over 10,000 wind and flood related investments and their associated reduction in property loss and business disruption exposure.

“Businesses often wonder if they are getting a good return when they invest in preventing hurricane-related wind and flood damage,” said Brion Callori, Senior Vice President, engineering and research manager, for FM Global.

“This analysis has yielded a pretty convincing answer. And the 1-to-105 ratio doesn’t even reflect the business repercussions of a major hurricane loss such as damage to reputation, market share and shareholder value.”

FM Global issued advice designed to minimise the effects of costly wind damage and included the use of backup power generators, having rooftops inspected and secured, doors braced, windows covered, and vulnerable objects put away or strapped down, including rooftop equipment and solar panels.


Businesses can prevent costly flood damage by elevating or sealing off valuable equipment, FM Global say. Fastening storage tanks, inspecting fire protection equipment, and preparing to turn off utilities. Flood protection products that meet rigorous certification testing standards can reduce the need for sandbags.

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