In Mississippi, the city of Biloxi, has some very good news. This good news is just what the town needs during its time of recovery after a devastating hurricane ravaged some 12 casinos strung along the waterfront there.
Just 2 months before Hurricane Katrina spun its wrath on the area, the coastal town of Biloxi secured an insurance policy against a catastrophic event like a hurricane disrupting its stream of gambling revenue.
The town of 50,000 spent $92,000 on a business interruption policy that pays out $10 million at the request of its mayor AJ Holloway. He, and anyone else behind that decision will be getting many thanks no doubt.
Casino revenue accounts for about 33% of Biloxi's budget. The $10 million policy will cover nearly 6 months of the lost casino revenue.
After the destruction from the massive hurricane, the city of Biloxi needs the insurance money just to keep going.
Currently, money is being spent at nearly 3 times the rate that it would usually be spent because there are so many people on the city's payroll working towards recovery - but no income to the city itself is being made.
The casino insurance policy fro Biloxi was underwritten by Lloyd's of London. That insurance company has estimated its Katrina losses at $2.55 billion - its 2nd largest loss to this day.
Whatever happens next, we wish all the fine people of the stricken area the best.
