Prudence N. Barnes, Contributor
MOSS-SOLOMON
WITH A hyperactive hurricane season still ongoing, James Moss-Solomon, president of the Caribbean Association of Industry and Commerce (CAIC) has urged Caribbean businesses to plan effectively for natural disasters such as hurricanes.
Hurricane Dennis, the first hurricane system of the 2005 Atlantic Hurricane Season, caused severe flood damage in Jamaica, also leaving a trail of devastation in its wake in Haiti, Cuba and parts of the United States. The island is still recovering from the effects of Hurricane Wilma and last year, Hurricane Ivan wreaked havoc in the region racking up $35.9 billion in damage to Jamaica, according to Government estimates, and destruction of catastrophic proportions in the Cayman Islands.
"If this is a natural order of things, then we need to plan for it," Mr. Moss-Solomon said adding that hurricanes should come as no surprise to the region.
He noted that companies needed to implement disaster plans and be prepared to do whatever it takes to mitigate the effects of a disaster, as well as reduce and cover their risks.
"These are natural things to plan for; if you need to build appropriately for a hurricane zone, do that; if you need to take precautions like we do to avoid major risks-do it; if you need to put roller shutters in your place to close up your place when a hurricane is coming, do it," Mr. Moss-Solomon stated.
Mr. Moss-Solomon who is also chief corporate affairs officer at GraceKennedy, stated that has had a disaster plan in place for 16 years and had not suffered a major loss since Hurricane Gilbert in 1988, adding that such planning required discipline.
"Risk is a normal part of business. For example in our company here, it is a sovereign need that companies are to be fully insured and if we find you as a managing director of one of the companies not fully insured, you will lose your job.
There is no option to refuse to insure a company in the interest of a short term gain, he stated.
Since Hurricane Ivan, insurance premiums have risen between 15 and 40 per cent according to one report. Further increases are anticipated.
The CAIC president said that if companies wanted to be profitable and competitive, the insurance premium was not something they should take out of their business expenditure.
Apart from hurricane, he said there are floods, civil unrest, fire, and other risks.
"Every risk has a decision; are you going to cover it yourself or not," he added, citing the comparison with persons who choose third party insurance over the ideal of full coverage of their motor vehicles.
He cautioned against operating businesses and residences in low-lying areas, citing serious risks from storm surges to sections of Jamaica including housing developments like Portmore.
Mr. Moss-Solomon further noted that Caribbean businesses were not the only entities that faced disastesr, as companies in every part of the world had their own climactic realities and risks to deal with.
"Our office in Canada has to deal with snow storms. Snow storm is a reality if you are in Toronto. And they have to have heating in the place and air conditioning in the summer," Mr. Moss-Solomon stated.
Companies in the region could view the fact that they do not have to expend on heating in the winter as a competitive advantage, he said.
