Risk Management Group Says Gustav Damage Between $4 and $10 Billion

A catastrophic risk management company says private insurers could face damages from Hurricane Gustav between $4 billion and $10 billion.

Newark, California-based Risk Management Solutions said on September 2 that the estimate included damage to the offshore petroleum industry and damage from wind and storm surge. The estimate did not include potential levee damage or from post-Gustav flooding from heavy rainfall that was forecast for the rest of the week.

The company said damage to the offshore petroleum industry could range from $1 billion to $3 billion. Insured losses to homes and businesses were estimated from $3 billion to $7 billion.

Those estimates do not include liability facing the federal flood insurance program.