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OHIO COMPANIES ALSO EXPOSED TO FLOOD DAMAGE; MANY NOT PROTECTED WITH INSURANCE

 FAIRLAWN, Ohio, July 20 /PRNewswire/ -- There are lessons Ohio business owners should learn from the billions of dollars in losses caused by The Flood of '93, according to a risk management expert with clients located in the area affected by the flooding.
 "Many companies in this area are also located in a flood zone. Our experience has shown that many executives are not only unaware of this, they're also not covered for flood damage in their insurance policies," says Todd Stein, president of Brunswick Companies.
 Approximately 7.0 percent of Ohio acreage is classified as "flood- prone," according to a study published by the U.S. Soil Conservation Service. A 1992 report by the Federal Emergency Management Agency (FEMA) calculated the value of property located in Ohio's flood plain areas at $11.058 billion. A company can determine if their property is located in a flood plain by calling their city engineer.
 Property is often left uninsured, Stein explains, because most property insurance policies routinely exclude coverage for flood and earthquake damage unless a company specifically purchases such coverage.
 Stein's firm is working now with a mall developer headquartered in Des Moines, Iowa, with sites throughout the Midwest that are affected by flooding. Brunswick is working with local mall managers to ensure that facilities that need to be closed are prepared to re-open quickly, and they are gathering information in advance to speed the insurance claims process should any claims be necessary.
 Companies that own facilities located in a flood plain are eligible for federal insurance coverage through the National Flood Insurance Program, and additional coverage can be purchased through a company's property insurance carrier.
 "The cost for these policies are minimal, yet they're part of a sound risk management program that any prudent business has in place," Stein says.
 A risk management firm is unlike a traditional insurance broker in that it seeks to minimize the source of liability and exposure, rather than just buy insurance to cover those liabilities. By reducing the causes of liability -- its risks -- companies save money on the amount of insurance they need to purchase.
 "Having a risk management plan in place means the difference between re-opening quickly after a catastrophe like we're seeing now, or remaining shut down for months. It's literally a life-and-death outcome for many businesses that aren't able to survive an extended shutdown, a disruption that's easily preventable," says Stein.
 All companies should prepare a detailed risk management plan and audit their businesses regularly to ensure that a flood, tornado or thunderstorm doesn't cripple their operations:
 -- Ensure that you're carrying business interruption insurance, coverage that protects your income from any losses due to temporary shutdown caused by weather or other catastrophes.
 -- Do you have "loss of profits" coverage, or a plan that reimburses the business from un-recovered revenue?
 -- Do you have back-up manufacturing relationships in place with nearby companies that agree to temporarily pick up production duties?
 -- Identify ready sources of rental equipment, supplies, generators, etc., that you can use to keep your company in business after a storm.
 -- Update your record-keeping procedures. "The burden of proof to document real losses is on you as the business owner," explains Stein.
 Brunswick Companies, with offices in Fairlawn, Columbus and Cleveland, Ohio, is a risk management firm that specializes in professional liability insurance, insurance underwriting, risk and claims management, workers compensation, financial consulting, and automated accounting solutions and support.
 -0- 7/20/93
 /EDITOR'S NOTE: Interviews with Todd Stein available/
 /CONTACT: Joel Goldstein, president of Goldstein Group Communications, 216-398-0030, for Brunswick Companies; or Kelly Kleinschmidt of Brunswick Companies, 216-864-8800/


CO: Brunswick Companies ST: Ohio IN: INS SU:

KL -- CL001 -- 6570 07/20/93 08:40 EDT
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Date:Jul 20, 1993
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