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Weathering the Storm: Insurance Strategies for Businesses

April 30, 2025

How 2024’s Natural Disasters Impacted Businesses & Insurance

The frequency and severity of natural disasters have been rising, with 2024 proving to be another costly year for businesses and insurers alike. The National Oceanic and Atmospheric Administration (NOAA) recorded 27 separate billion-dollar weather and climate disasters in the U.S., surpassing the five-year average of 23 events. With losses nearing $183 billion and devastating impacts on communities, infrastructure, and industries, understanding these trends is critical for business owners when considering their insurance coverages and risks.

Major Disasters of 2024

  • Winter Storms & Cold Waves: Early 2024 brought extreme cold to both Northwestern and Northeastern states, leading to power outages, infrastructure damage, and $3.5 billion in losses.
  • Severe Storms & Tornadoes: Hailstorms, thunderstorms, and tornado outbreaks ravaged the central, southern, and eastern U.S., totaling over $40 billion in damages.
  • Hurricanes: The Atlantic hurricane season was particularly destructive, with Hurricanes Helene and Milton leading the charge.
    • Hurricane Helene (Category 4) caused 219 fatalities and $78.7 billion in losses across Florida and the Southeastern U.S.
    • Hurricane Milton (Category 3) generated $34.3 billion in damages, spawning multiple tornadoes across southern Florida.
  • Wildfires: The Texas Panhandle fire became the state’s worst wildfire on record, burning over 1 million acres and causing more than $120 million in agricultural losses.
  • Droughts & Heat Waves: Virtually every part of the U.S. experienced drought, impacting agriculture and costing $5.4 billion in losses.
  • Flooding: Heavy rains led to widespread flooding in the Midwest, damaging thousands of properties and costing $1.1 billion.

Impact on Businesses and the Economy

Natural disasters disrupt industries in various ways:

  • Property & Infrastructure Damage: Buildings, vehicles, and business equipment often suffer major losses.
  • Business Interruptions: Downtime, relocation expenses, and lost income add financial strain.
  • Agriculture & Manufacturing: Crop destruction, supply chain disruptions, and damaged inventory increase costs.
  • Tourism & Hospitality: Visitor downturns following disasters impact revenues.
  • Rising Unemployment: Recovery efforts can lead to business closures, layoffs, and financial instability.

How Natural Disasters Are Reshaping Insurance

2024 continued the trend of increasing insured losses, with Munich Re, an international reinsurance company, estimating that a $145 billion was covered by insurers—yet still leaving a significant protection gap. As disasters become more severe and unpredictable, the commercial insurance carrier landscape has responded with:

  • Fewer Carriers in High-Risk Areas: Many insurers have exited markets in states like California, Florida, Louisiana, and Texas due to catastrophic losses.
  • Rising Premiums & Stricter Policies: Double-digit rate increases and tougher underwriting standards are common, especially in disaster-prone regions.
  • Capacity Limitations: Reduced policy limits and exclusions leave businesses more exposed to financial losses.

Preparing for the Future

Given the increasing risks, businesses should prioritize comprehensive risk management strategies, including:

  • Disaster Preparedness Plans: Implement evacuation procedures, secure essential assets, and train employees.
  • Adequate Insurance Coverage: Review property, business interruption, and flood insurance policies with your Robertson Ryan Insurance Agent to ensure adequate protection.
  • Resilient Infrastructure Investments: Consider weatherproofing buildings and diversifying supply chains.
  • Business Continuity Planning: Establish backup operational sites and alternative revenue streams.

Concluding Thoughts on Being Proactive

With climate experts predicting continued extreme weather patterns, businesses must stay proactive. Proper insurance coverage, coupled with strong risk management, can help mitigate the financial impact of future natural disasters. Now, before the “next” event, is the time to assess vulnerabilities and strengthen your business’s resilience against the unexpected. Reach out to your Robertson Ryan Insurance Agent.

For a more thorough report on the 2024 Natural Disaster Roundup, download this report.

*Please note that we rely on independent sources, and recommend conducting further research or to seek guidance from a qualified industry professional, legal counsel, or licensed insurance