Several forecasters released their predictions for the upcoming hurricane season in the last month. Colorado State University’s tropical meteorology project team is forecasting 17 storms, nine of which will become hurricanes and four of which will reach Category 3 or stronger. The Weather Company and Atmospheric G2 expect 19 storms to form this season, nine of which will become hurricanes and four of which will reach Category 3 status or stronger. AccuWeather predicts between 13 and 18 storms.
Estimating the financial impact of a hurricane is never straightforward—there are just too many moving parts. The numbers add up fast, from the cost to repair or replace damaged property to revenue lost during downtime, supply chain disruptions, and the added expense of relocating staff.
But the real challenge isn’t just about cost, it’s about preparation. Businesses must identify what’s most critical to their operations, whether buildings and equipment or data and digital systems, and ensure those assets are protected. A strong preparedness plan that kicks in before, during, and after the storm can determine how quickly a business recovers.
Evaluate Your Current Preparedness Plan
Review your emergency response plans and ensure they have been updated recently. Make sure all key stakeholders and department leaders are well-versed on the plans and who is responsible for what, including personnel communication and safety. Develop procedures for managing crises like evacuations. Assess your level of exposure, including which facilities/offices, data centers, and critical assets are most vulnerable to a hurricane.
Property/Infrastructure
- Ensure buildings are adequately protected with hurricane shutters and sandbag entrances.
- Test all emergency generators, vehicles, and other equipment, and ensure enough additional fuel is available.
- Clean out floor drains and catch basins, and check drainage pumps.
- Move vehicles and mobile equipment to a safe location before the hurricane hits.
- Anchor and fill above-ground tanks with product or water to help keep them secure during the storm.
- Shut down production processes safely and turn off the power to non-critical equipment.
- Shut off all flammable liquid, combustible liquid, and gas lines in case a pipe breaks during the storm.
Documents and Data
- Make copies of all documents that are not easily produced, such as insurance policies, legal contracts, tax returns, and accounting statements and store them in waterproof containers.
- Have backups of all necessary computer files and data. A cloud solution is an ideal option.
Review Insurance Policies
Review current coverage and ensure it aligns with the specific risks hurricanes bring. Key areas to evaluate include:
- Commercial property insurance: Protects the building, equipment, and inventory from damage caused by wind and rain.
- Business interruption insurance: Covers lost income and essential operating expenses if you’re forced to temporarily shut down.
- Flood insurance: Most property policies exclude flood damage, so a separate Flood policy is essential.
- Inland marine insurance: If the business involves transporting goods, this can protect you from losses caused by storm-related transit disruptions.
- Debris removal coverage: Helps pay for cleanup after a storm, including removing fallen trees, damaged materials, or other debris from your property.
About Seneca Insurance Company
Seneca Insurance Company is known for its broad appetite for writing property risks. We offer admitted and non-admitted ISO-based policies, with catastrophe perils based on location and risk characteristics.
