2026 Hurricane Forecast: A Milder Forecast Doesn’t Reduce Risks

By Sean Briscoe, Vice President – Loss Control

The 2026 hurricane season predications may be calling for milder activity, but all it takes is one serious storm and insufficient preparation from a business owner to shutter a lumber organization’s doors. While the overall number of predicted hurricanes may be less than in years past, the threat of property damage and long-term business interruption remain due to the increased severity of storms. Businesses, particularly those operating in flood zones, must prioritize hurricane preparedness to mitigate financial losses and streamline disaster response.

Even in quieter storm years, insurers have seen significant damages. For example, 2025’s hurricane season featured one of the most powerful Atlantic hurricanes ever recorded at landfall: Hurricane Melissa. According to the World Bank, Hurricane Melissa resulted in a devastating $8.8 billion in damages to the Caribbean, mitigated in part by the resiliency efforts planned ahead by the Jamaican government.

High-speed winds – those reaching up to 75 miles per hour or more – can turn debris into dangerous projectiles that can bring down trees and powerlines, block roads and leave areas without electricity. Floodwaters related to these storms can linger for days, causing further strain on cleanup efforts and disrupting the supply chain. When it comes to business disruption following a hurricane, businesses can be inoperable, not just for a matter of hours, but days, months or even sometimes years. Without the right planning and insurance coverage in place, business interruption can financially devastate a business.

What to do before the clouds roll in

Disaster preparedness strategies and tactics continue to evolve as economic and environmental factors have further complicated recovery efforts. Social inflation has driven up repair and replacement costs, worsening claims severity and prolonging business interruption. At the same time, shifting climate patterns have introduced flood losses to regions historically not exposed to the risk.

So, what can business owners in the lumber industry do to get ahead? Work proactively on disaster preparedness regardless of the forecast. Consider the following guidance ahead of storm season:

• Disaster planning: While property and product damage from hurricanes may be where most business owners focus disaster planning, business interruption is an often-overlooked cause of financial strain in the aftermath of storms. Before a storm, remove possible projectiles by moving outdoor materials indoors, anchoring down heavy equipment and conducting regular tree maintenance. Reinforce windows by boarding them with plywood and sealing gaps in doorways where water is likely to leak. Following a storm, inspect the roof for any structural damage and the property for anything that needs to be repaired or replaced.
• Executing the plan: Once a plan is in place, business owners should ensure all staff members are clearly assigned roles in the event of a hurricane and have access to the disaster plan. Train staff with disaster drills so that when a storm hits, business owners can trust employees know how to respond. Following a storm, schedule a meeting with team members to discuss what did and did not work. As storm season conditions continue to change, lumber business owners should evaluate their disaster plans to account for an organization’s shifting needs, inventory and properties.
• Securing the right insurance coverage: Social inflation and climate change have heightened common risks associated with the hurricane season, widening coverage gaps related to flood coverage and more. Without a proactive effort, business owners could learn they are underinsured when it is too late. Lumber business owners should perform risk assessments with an insurance professional ahead of the hurricane season, walking through the property to identify risks and taking note of potential exposures. Work with PLM to conduct regular property inspections of roofing, gutters and drains and prioritize consistent maintenance upkeep to reduce potential exposures.

Now is the time to discuss disaster readiness with insurers and safeguard operations, products and employees from harm. With the right planning, damage can be minimized and lumber business owners and operators can be better prepared to weather the oncoming storm.