By Sean Briscoe, VP of Loss Control
Hurricane season is fast approaching and though there are fewer storms predicted by experts this year, producers have an important role to play in helping insureds understand that a single event can cause severe property damage and prolonged business interruption.
Catastrophic events are increasing in both frequency and severity, with impacts extending well beyond traditional geographic boundaries. In 2025 alone, the United States experienced 23 separate billion-dollar weather disasters, despite the lack of a major hurricane making landfall. This highlights the fact that losses are being driven by a wider range of events including inland flooding and severe storms. On top of that, these weather events are affecting areas not historically exposed to these hazards, creating new challenges for business owners across all industries, including those in the lumber and building materials industry.
For producers, this is an opportunity to shift insureds’ focus from reacting to disasters to proactively preparing for them.
Preparation should start with a comprehensive risk assessment. Business owners should evaluate their properties, operations and exposures to identify vulnerabilities that could be amplified during a storm. This includes working with experts to assess flood risk, even in areas not typically prone to flooding, as well as surveying roofing, drainage systems and surrounding vegetation.
Equally important is considering insurance coverage against current values. Rising material costs and fluctuating inventory levels have left many businesses underinsured, with recent data showing that as many as 77% of small businesses in the U.S. lack adequate coverage. Like property coverage, business interruption insurance is critical to financial recovery after a catastrophic weather event. In many cases, the financial impact of business downtime can exceed the cost of physical damage, particularly for small and mid-sized businesses.
Once risks are identified, producers should outline mitigation steps business owners can implement. Insureds can take practical actions to reduce potential losses, such as:
– Securing outdoor equipment, inventory and loose materials
– Reinforcing windows, doors and structural components
– Inspecting and maintaining roofs, gutters and drainage systems
– Trimming trees and removing potential debris hazards
These measures, while straightforward, can significantly limit damage during high-wind and flooding events.
However, strengthening physical protections on a structure is not enough. A formal emergency preparedness and business continuity plan is essential to preventing extended disruptions. Business owners should clearly define employee roles, establish communication protocols and outline procedures for shutdown, cleanup and recovery. Tools such as IBHS’s EZ-PREP and OFB-EZ programs provide practical frameworks to help businesses prepare for both immediate response and long-term continuity.
The reality is that catastrophic events are unavoidable and often unpredictable. What remains within control is how well a business is prepared to respond and recover.
Producers play a key role in this process by initiating early conversations, guiding insureds through risk assessments and ensuring coverage aligns with evolving exposures. With the right planning and proactive measures in place, business owners can reduce losses, protect their operations and maintain continuity even in the face of severe weather.
As hurricane season approaches, preparation is not just a recommendation. It is a critical step in protecting insureds and preventing business interruption when it matters most.
