Is Earthquake Insurance Really Worth The Cost?

Is Earthquake Insurance Really Worth The Cost?

We all know that earthquake insurance can be costly. However, many businesses mistakenly fail to consider earthquake insurance due to the cost and other factors. We hope to show you the value of having earthquake insurance as part of your insurance portfolio.

  • The biggest mistake business owners make is to think it won’t happen to them. According to the U.S. Government, there were over 15,700 earthquakes in 2012. The economic damaged caused, was over $12,000,000 worldwide.
  • Almost 80 percent of all the planet’s earthquakes occur along the rim of the Pacific Ocean, called the “Ring of Fire”; a region that encircles the Pacific Ocean and is home to 452 volcanoes (over 75 percent of the world’s active and dormant volcanoes).
  • Each year the Oregon area has about 4,000 earthquakes; the majority of which go unnoticed. If there is a large earthquake, however, the aftershock sequence will produce many more earthquakes of all magnitudes for months.

National Earthquake Information Center, Red Cross

The cost of earthquake insurance is much more competitive than you may think. When the damage exceeds the deductible, the insurance company pays the difference, although there may be limits on the maximum paid out. If you have any loans against your facility, you may be required to carry earthquake insurance. You should consider earthquake insurance when the risk of financial loss is greater than your tolerance.

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