Report: One-Third Of Businesses Affected By Storm Sandy Were Uninsured

by Categorized: Economy Date:

Among small businesses affected by storm Sandy in 2012 and polled by the Federal Reserve Bank of New York, one-third had no insurance and half paid for damages out of personal funds.

The New York Fed polled the businesses in New Jersey, New York city, the Hudson Valley and coastal Connecticut late last year between Oct. 10 and Dec. 3, roughly a year after the storm.

Forty percent of firms reported being affected by the storm, mostly negatively, although 8 percent said they had net financial gains — including some in construction.  Among the one-third of respondents hurt by the storm, “22 percent had losses greater than $100,000,” the New York Fed said in a release Monday.

“The top sources of losses for firms included decreased customer demand (59 percent), utility or service disruption (43 percent), and damage to or loss of assets (29 percent),” the report said.

A breakdown of responses by state or county was not available Monday. New Jersey and New York city were hit much harder than Connecticut and the Hudson Valley.

Among the firms hurt by the storm, 43 percent cited a continued financing need of $25,000 to $100,000. a similar percentage of those helped by the storm cited the same financing need.

 

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