Natural disasters strike with increasing frequency and unprecedented force these days — and when they do, businesses often bear the brunt. Proactive planning can help companies ward off costly trouble and protect what’s important, but knowing where to begin isn’t easy.
Here, BCH’s risk management and business insurance professionals guide you through critical considerations for every stage of a natural disaster. From ensuring you have the proper coverage in place for your operations to looking out for your physical property and structures and ensuring your people are adequately prepared away from work, too, we’re here to provide information that matters, when it matters. Let’s get started.
Storm Risk Management: Safeguarding Operations Ahead of the Storm
The best-prepared companies are those that take storm risk management efforts seriously. Regularly thinking through the unique issues that could impact business — and addressing obstacles before they become costly problems — can help you avoid delays, reduce repair expenses and keep your people and property better protected. Here are some key areas to focus your storm risk management efforts.
Geographic and Environmental Risks
- Consider past weather patterns when preparing your business for the future. Are your operations in an area regularly exposed to hurricanes, tornadoes, floods, wildfires or winter storms? Each carries unique threats, but all benefit from custom mitigation strategies.
- Landscape wisely. Large trees close to buildings can become projectiles, while poor grading can funnel rainwater toward entryways. Ensure drainage systems are clear, and reinforce or remove hazards before storms develop.
Structural Concerns
- Think through the vulnerable areas of your building itself. Are there parts of your roof that are known to leak? Is there damage that could allow moisture or debris in — or impact your building’s ability to protect? Pay special attention to doors, windows, roofs and cladding, and make repairs quickly when needed.
- When possible, fortify at-risk building components to offer improved protection. Storm shutters, reinforced garage doors and hurricane straps can all offer improved peace of mind.
Operational Considerations
- Evaluate your power supply, as well as where (and how) you store inventory. Are backup generators available if needs arise? Are important files, tools and equipment secure yet accessible in a second location or through the cloud? Simple pre-storm arrangements can help you avoid downtime and minimize loss.
- Ensure critical systems are protected. IT infrastructure, HVAC units, machinery and the like require adequate protection against issues such as water ingress and power surges.
A trusted risk advisor can help you plan for (and protect against) potential threats, so nothing goes overlooked. Make it a point to meet with them at least one per year to evaluate your storm risk management approach — and more frequently if operations evolve and needs shift.
Commercial Insurance: Securing the Coverage You Need
As crucial as a well-planned risk management strategy is, it’s only part of the puzzle. Commercial insurance coverage also plays an important role in safeguarding today’s businesses against intensifying threats. And not all coverage is the same.
It’s important to ensure coverage is tailored to meet your company’s unique region, industry and risk profile. Doing so helps to avoid gaps that could leave you exposed — everything from property damage and business interruption concerns to repair and cleanup costs. Here’s a look at a few specialty coverage options that might make sense, depending on your operations and industry.
- Inland Marine Insurance: Covers equipment in transit
- Flood Insurance: Ideal for facilities in high-risk zones
- Cyber Liability Coverage: Protects against digital disruptions
- Business Interruption Insurance: Covers revenue losses during downtime
While weighing your options for commercial insurance coverage, remember to keep finances in mind. In many instances, costs are rising. The National Oceanic and Atmospheric Administration (NOAA) notes that in 2024 alone, the United States experienced 27 separate weather and climate disasters, causing more than $1 billion each in damages. Total losses were more than $182 billion. Such strain has driven carriers to adjust policies, often through higher premiums and larger deductibles. One such example is the named storm deductible, which is typically higher than a fixed-dollar deductible, and is triggered by special weather conditions.
Working with a trained business insurance professional who understands your industry and local risk factors can help keep costs under control and ensure your policy is working as hard as it should. Regular assessments can also help account for changes in your operations, your property and the evolving insurance market, all to ensure that when disaster strikes, you have what you need recover quickly.
Looking Out for Your People: Emergency Preparedness When Weather Strikes
When prepping your business for natural disasters, don’t forget your most valuable asset — your people. Protecting them isn’t just the ethical thing, but it’s also good business. Emergency preparedness ensures that when storms loom or the unexpected hits, your team knows where to go, how to stay safe and what’s needed to keep operations running. Here are some things to keep in mind.
- Build Out an Emergency Plan: Determine who your company’s points of contact should be, how team members should keep in contact and what should happen if evacuation orders are issued. (Who should stay? Who should leave? Is there an off-site location where you can carry out your work?) Communicate the plan early and often to ensure your team understands what is expected.
- Stock Up on the Essentials: The right supplies can make a disaster situation more manageable while also helping to minimize loss and create safer surroundings. Purchase batteries and flashlights, keep backup power sources charged and ensure you have adequate cleaning supplies, including bleach, face masks and gloves. DIY repair tools such as tarps are also important, helping to protect your property and minimize losses.
- Encourage Employee Preparedness at Home: Are team members equipped to look out for themselves and loved ones if natural disasters strike away from work — or if they need to evacuate? Communicate the importance of preparing personal emergency kits stocked with water, non-perishable food, medications, documents and the like. In addition, encourage them to plan out an evacuation route and think through shelter options, should conditions require them to leave home.
Natural disasters don’t have to spell disaster for your business. With thoughtful storm risk management efforts, tailored commercial insurance and a solid approach to emergency preparedness, it’s possible to weather the storm — and often come back even stronger afterward. If you have questions about any of the above, or if you’re interested in making sure your business is ready for whatever lies ahead, feel free to reach out at any time. Our Disaster Recovery webpage is also a great resource, filled with information regarding what to do following a loss, contact information for insurance carriers and quick links to guide your claims process. Before, during and long after the storm, BCH is here when it matters.