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A catastrophe is an industry term for a single event causing widespread insured damage above a defined threshold, such as a hurricane, major hailstorm, or tornado outbreak. Cat events trigger special carrier claims procedures.
An industry term for a single event causing widespread insured damage above a defined threshold. Hurricanes, major hailstorms, wildfires, and tornado outbreaks are usually declared cats. Example: when a hailstorm hits a metro area and produces tens of thousands of roof claims, carriers declare a cat event, deploy mobile claim units, and prioritize cat claims separately from routine ones.