Red tape can delay rebuilding and insurance payments for employees already impacted by a disaster. 2012’s Hurricane Sandy was one example of this. At a town hall meeting in March of 2014, New Jersey Governor Chris Christie addressed the issue of ongoing delays in rebuilding after Hurricane Sandy.
Governor Christie blamed the slow pace of reconstruction on delays on federal government bureaucracy. In addition to the large-scale construction projects under delay, there was also an acknowledgment that many residents were still awaiting insurance claims to be processed and settlements to be distributed. Still, many residents were unable to return home, and others feel as though their insurance claims have stalled, with no end in sight.
This underscores the importance of company-sponsored employee emergency disaster relief funds. While an employee fund would in no way replace the larger sum of an insurance settlement, a grant payout could provide employees with some temporary relief. Taking some of the financial pressure off could help those who lost their homes find temporary housing, replace lost items, and provide a cushion while waiting for insurance funds or other relief. This sort of indefinite time period for a hardship can be financially and emotionally difficult for all involved, which an employee relief fund can help with in at least a small way. These funds can also help affected employees return to work faster.
In the case of New Jersey, there was no definite timeline for when homes and businesses would be rebuilt, and when residents would receive settlements. In the chance that a disaster could strike your employees, any amount of financial relief would be a blessing. A disaster relief fund can provide that small measure of relief to your employees.
Source: Dawsey, J. (March 6, 2014). Gov. Christie blames slow Sandy recovery on federal government. The Wall Street Journal. http://online.wsj.com/news/articles/SB10001424052702304815004579419391090698958?mg=reno64wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304815004579419391090698958.html