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.
