Planning and preparation key to extreme weather resilience

It doesn’t just seem like extreme weather events – such as severe convective storms, hurricanes, wildfires or heat waves – are happening more often, the actual data shows that the frequency and severity of weather events that cause billions of dollars in damage is trending upward.¹

The average annual count of billion-dollar disasters – adjusted for inflation – over the last 44 years has been 8.7 events per year, but since 2016 the annual number of events has been well above that. The last five years have been especially active with a record 28 events in 2023, and since 2019 there has been an average of 20.4 per year.¹

This trend of increasingly severe weather makes it critical for all businesses and organizations to prepare their property and business operations. Planning before an incident can help reduce damage, protect workers and mitigate costly disruptions. The financial burden of natural disasters is especially felt by small businesses, which often have fewer resources to aid in recovery efforts.

Rising threats

In 2023, the United States had a record 28 weather disasters totaling $92.9 billion in overall damages.² Wildfires, droughts, hailstorms, severe thunderstorms, hurricanes and floods led to fatalities and infrastructure damage across the country.

Through the first eight months of 2024, there have been 19 billion-dollar disasters in addition to other severe events that have caused multiple deaths and disruptive conditions. Of the major events this year, 13 have involved severe convective storms and tornadoes.²

Increasing weather volatility means it’s possible for a wide variety of weather threats – or their ripple effects – to strike any part of the country at virtually any time. As an example, tornadoes struck Wisconsin in February just a few weeks after a severe cold wave gripped most of the country.

Infographic: Prepare for extreme weather

Preparing for severe weather

According to FEMA, 25% of businesses fail after a disaster.³

Severe weather can cause worker injuries and significant damage to businesses, including property damage, supply chain disruptions and revenue losses, making it more important for companies to build resilience to extreme weather into their operations.

Climate resilience is the ability to anticipate, prepare for, and respond to hazardous events, trends, or disturbances related to climate.⁴ Improving climate resilience involves assessing how climate change will create new, or alter current, climate-related risks, and taking steps to better cope with these risks.

Adopting climate resilient practices can help businesses of all sizes prepare for, respond to, and recover from extreme weather events.

Our recent property protection survey showed that business owners are concerned about the threat of extreme weather. Volatile conditions underscore the importance of weather readiness and having conversations with customers about the threat weather poses and the need to act before severe conditions are present.

A business continuity plan should be part of every operation’s disaster-planning process. The business continuity program from Nationwide’s Loss Control Services can help businesses and organizations develop a risk management strategy, plan for emergencies, and recover from disasters.

More steps business owners can take to reduce injuries and damage from weather events are listed below.

• Severe convective storms and tropical weather – Convective storms and tropical weather can cause a wide variety of damage – wind, hail, water, and electrical. Tornados are also spawned from these systems, causing even more intense damage. Windows, doors, roof coverings, HVAC equipment, and vehicle fleets can all be at risk of damage.
  • To help protect windows, storm shutters or adding shatter-resistant film can help protect against windborne debris. Windows with high-impact glass can also be installed to prevent breakage.⁵
  • Installing impact-resistant roof coverings should be considered to help prevent damage. ⁵
  • Surge protectors should be used to help protect sensitive electronic equipment during electrical storms or an outage. If an outage does occur, it is a good practice to unplug equipment until after electricity has been restored. ⁵
  • Caulking around doors and windows should not be cracked or missing. Properly caulked and sealed doors and windows help ensure wind and water will not enter the structure. ⁵
  • Gutters should be cleared to help clear water away from the structure. ⁵
  • In the immediate approach of a storm, any signage, furniture, or equipment outside should be secured so that they don’t become damaging projectiles in high wind. ⁵
  • Vehicle fleets should be parked in garages or moved to a safe location to prevent damage. ⁵
• Wildfire – Wildfires can consume a wide amount of territory and change direction quickly, depending on conditions and winds. The volatile nature makes it critical to plan and prepare well in advance.
  • Create a defensible space 30 feet or more away from structures. This involves removing combustible material such as vegetation, mulch or other landscaping material that could burn.⁶
  • Airborne embers are a major hazard during wildfires. Installing roofing and siding that resists burning and melting can lower the risk of structure fires. Also, clearing gutters of debris that could be flammable can help reduce the risk of fire. ⁶
  • Fire-resistant caulk to seal any gaps in exterior walls, doors, and windows can help reduce the likelihood of embers starting a fire. Foundations should also be sealed to prevent embers from entering under the building. ⁶

• Heat – According to FEMA, extreme heat is the leading cause of weather-related fatalities in the United States.⁷ Heat waves can present a danger to people who work outside or in conditions that aren’t climate controlled. In these situations, it’s important to provide cooling stations and water to prevent overheating and dehydration.

Extreme heat can also strain the energy grid as more people depend on air conditioning. This situation can cause utility companies to shut down portions of the grid to protect against total power outages.

Risk management resources

Resources are available from Nationwide to help customers protect their workers and property from extreme weather. Loss control materials on mylosscontrolservices.com can be shared with customers to help them learn more about severe weather events, prepare for emergencies, and establish business continuity plans. We also have talking points available to help support your conversations with customers about weather risks.

In addition, we have a strong relationship with the Insurance Institute for Business and Home Safety (IBHS) to help advocate for more resilient communities, and research conducted at IBHS provides insight into how to better protect people and property from natural disasters. In partnership with IBHS, materials on mylosscontrolservices.com that are available to customers include:

• Make your business hurricane ready
• Prepare your business for storms
• Knowing the risks to your business

By identifying risks and preparing before the storm, customers can help protect their businesses and help reduce the potential for loss and disruption.