Oklahoma has become a hotspot for earthquake activity. It is suspected that the rise in earthquakes is due to increase of usage in disposal wells. Risk managers are trying to assess the damage so that they can interpret immediate and future risks associated with the seismic activity in Oklahoma.
There are many factors that need to be considered with natural disasters and trying to understand the risks. In 2016, Oklahoma saw a drop in the number of earthquakes compared to the previous year. Yet, they also experienced an earthquake of the highest magnitude ever recorded in Oklahoma.
Another state well known for its earthquakes is California. To better assess Oklahoma’s data, the U.S. Geological Survey (USGS) has compared Oklahoma’s seismic data to California’s. They have found that the number of high magnitude earthquakes is significantly higher in Oklahoma. The larger the earthquake, the more damage that can occur. Risk in not only about damage though. Risk means the possibility of loss or injury so when comparing California and Oklahoma, population must be taken into account.
California has approximate 38 million people, compared to Oklahoma’s 3.8 million. The amount of people, homes, and businesses that can be affected by an earthquake is much higher, therefore, California’s risk is much greater than Oklahoma’s.
Your insurance coverage is an important aspect of protecting your business. Natural disasters are on the increase with the change of climate. Areas that have not experienced such tragedies are now feeling the impact. The costs that are associated with a natural disaster can threaten your business. Aside from property damage, you’re looking at loss of income, potential hazardous material cleanup, and emotional effects for you and your employees.
Your risk and exposure to natural disaster should be taken into account when selecting your coverage. Talk to an agent at Cigar Insurance USA today to discuss an insurance plan that is best for you.