Avoiding business interruption from weather issues is getting harder and harder. 2017 was a historically bad year: the U.S. experienced 16 different billion-dollar disaster events including three tropical cyclones, eight severe storms, two inland floods, a crop freeze, drought and wildfire.
Perhaps even more notable is the cumulative cost of weather damage, which was $306.2 billion, shattering the previous U.S. annual record cost of $214.8 billion (Consumer Price Index-adjusted) in 2005 due to the impacts of Hurricanes Dennis, Katrina, Rita and Wilma. The damage from Hurricanes Harvey, Irma and Maria accounts for approximately $265 billion of the $306.2 billion. Each of these now joins Katrina and Sandy, in the new top 5 costliest U.S. hurricanes on record, according to the National Oceanic and Atmospheric Administration.
While a few argue about the reason, the result is crystal clear: all businesses must have a comprehensive weather-disaster strategy. Start by reviewing your insurance coverage. Read the policy, and understand what’s covered and what isn’t.
Then, get smart. Use all available technology to know when weather disasters are headed your way, so you can act to mitigate or avoid loss. Our company is the only source of weather data specific to an address. For pennies a day, we monitor 24/7/365 and notify you only when damaging weather is imminent.
A planned response is key. It should be open-ended, because you can’t really know how long business will be interrupted. If you’ve never lived through a major weather event, you might not understand the value of wide insurance coverage. As many as 40 percent of small businesses don’t have proper coverage, and end up shuttered after a disaster.
Some costs can be covered by business interruption insurance. This is especially important for those for whom the loss of a physical location means a significant loss of revenue. Some policies reimburse for lost profits when weather causes business interruption. Some keep payroll going. Do you know which weather events trigger coverage for your business, and the limits of your policy? Have you had major growth, and now your limits are too low?
The best way to avoid business interruption from weather is to have as much advance warning as possible, with strategic decisions already made, and implementation rehearsed.
Only WeatherCheck makes premise-specific damage assessments and sends pre- and post-event weather alerts to trigger action. We curate and analyze data from dozens of sources to pinpoint damaging hail storms down to individual addresses. Upon enrollment, we review a full year’s weather history of each property, identifying existing damage still eligible for insured repair. Then we monitor each address 24/7/365 going forward. Our proprietary algorithm is so accurate, we notify only when damaging weather has affected a property. We immediately send owners a WeatherCheck Damage Report, with details such as the date of a hail strike, with average hail size, so you can file accurate and timely claims, while taking fear and subjectivity out of that process.