Earthquake Insurance for Commercial Lines


The US Geological Survey (USGS) estimates that several million earthquakes occur throughout the world every year. Most of them go undetected because they have very small magnitudes or hit remote areas. Unlike many other natural disasters, earthquakes occur suddenly, without warning. Virtually impossible to predict, earthquakes can cause major damage to buildings and personal property, as well as serious injuries and deaths.

This course examines the nature of earthquakes and the extent of the exposure in the United States, and explains the extent to which standard commercial insurance policies cover—or fail to cover—earthquake losses. It also describes endorsements, policy modifications, or other options that can be used to fill coverage gaps and provide earthquake coverage.

This course was developed to meet the 1-hour continuing education study requirement on earthquake insurance for Oklahoma insurance licensees. 

Learning Objectives

Upon completion of this course, students should be able to

  • identify the basic characteristics of the earthquake exposure and recognize the extent of the exposure within the United States
  • recognize the effect of various earthquake-related exclusions and limitation in commercial property policies, businessowners policies, and other commercial lines policies
  • identify commercial property and businessowners endorsements that can be used to provide earthquake coverage and recognize the effect of earthquake deductibles, limits, and other relevant coverage provisions found in these endorsements;recognize the extent to which other types of common commercial lines policies cover or exclude earthquake losses
  • identify the key characteristics of DIC policies and recognize how these policies can be used to provide earthquake coverage.

Designed For

OK insurance licensees who hold a property line of authority
International Risk Management Institute, Inc. (IRMI) is the premier provider of risk and insurance continuing education and reference publications, and is considered the ultimate authority by leading insurance practitioners. Written by industry experts, IRMI courses provide the most up-to-date, practical and reliable information possible.
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