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Insurance Important for Maintaining Business Continuity

Insurance policies that cover damages and losses can reduce the impact of a na

A spate of natural disasters over the past year should have CFOs and other board members running for their insurance files to check what they are covered for.

As CFO magazine notes, September is National Preparedness Month, and the source advises small companies to take a note from bigger corporations to learn how to get operations humming again soon after a disaster hits their area.

To devise an emergency-response plan for your company, meet with insurance agents to review the coverage for property damage, business continuity and casualties. It's also vital to determine the best way to protect employees and communicate that plan with workers.

In addition to offering protections for businesses, the insurance industry may also serve as an attractive investment opportunity. According to the Paragon Report, action by the Federal Housing Finance Agency to cut down on the long-term risk exposure created by holding Fannie Mae and Freddie Mac could drive the private mortgage insurance sector.

The report cites statistics from the Mortgage Insurance Companies of America, which show that in July alone, private mortgage insurers "wrote $4.9 billion in new business" despite others in the industry facing doubts about their liquidity and lower stock value.