Noto Peninsula Earthquake

On the 1st of January, Japan experienced a tragic and very significant 7.6 magnitude earthquake which struck at 07:10 (GMT) at the Noto Peninsula, in Central Honshu (Japan’s main island) circa 70km Northeast of Tokyo, with the coordinates of this quake being 37.498°N 137.242°E. 

The shaking and accompanying tsunami caused extensive damage on the Noto Peninsula, particularly in the towns of Wajima, Suzu and Anamizu. Ishikawa reported 232 fatalities and 21 missing, while over 1,100 were injured across multiple prefectures, making it the deadliest earthquake in Japan since the 2016 Kumamoto earthquakes.

It has been reported that the areas mainly affected are traditional villages with a strong focus on agriculture.  However, some tourism, industrial and manufacturing will be affected by the quake, initially due to loss of utilities and subsequently due to denial of access and supply chain issues.

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BUSINESS INTERRUPTION COVERAGE ISSUES 

• Government assistance considerations 
• Identification of the cause of loss and other contributing factors 
• Supply chain and drivers of revenue streams 
• Isolating non-loss-related factors 
• Currency and local lending considerations 
• Early involvement of the appropriate experts can help with the need for any mitigation efforts. 

MDD has considerable expertise in dealing with these types of claims and the complexities that may occur.  Experts like those of us at MDD will stress the need for proper audit protocols, controlling and sorting of costs and accounting for any potential saved expenses.