Don’t let winter catch your business clients off guard. Every year, severe storms cost companies billions in damages and downtime. The good news? With the right preparation, your clients can protect their operations and their bottom line.

Why Preparation Matters

Winter weather-related insured losses remain significant year after year. According to the Insurance Information Institute, winter storms in 2024 caused $4.02 billion in insured losses across six U.S. catastrophes. The total rises to $6.81 billion when you look at the total related economic loss. This follows $3.49 billion in 2023 and a staggering $18.63 billion during the 2021 Polar Vortex.

States you may not typically consider are impacted by winter weather. In February 2021 a Texas storm caused millions to lose electricity and heat for days in freezing temperatures. The Federal Reserve Bank of Dallas estimated economic losses from the storm to be between $80 billion and $130 billion, making it one of the costliest natural disasters in Texas history.

The U.S. Census Bureau’s Business Trends & Outlook Survey found in early 2024, 31.3% of businesses in Tennessee and 28% in Arkansas reported monetary losses due to extreme weather. These disruptions often include lost revenue, delayed shipments and increased operating costs.

These staggering totals highlight the growing importance of proactive risk management for small businesses. Encouraging your clients to evaluate vulnerabilities before a weather event can make a big difference.

Plan: Action Steps for Small Businesses

• Assess your risk and stay informed by watching weather and signing up for alerts.
• Plan a way to always maintain heat in your business, if possible.
• Inventory supplies and make necessary purchases.
• Develop a continuity plan for operating business.
• Communicate emergency procedures and remote work options for employees.
• Check your insurance coverage and inventory valuable equipment.

Prepare: Inspect Property, Call an Expert (If Needed)

• Inspect the roof, make repairs and know the maximum snow load.
• Assess how weathertight your property is, adding additional seals on windows and doors as needed.
• Insulate pipes, crawl space and attics.
• Check the air filters in your HVAC system and verify the last time it was maintained.
• Test your generator or invest in one if needed.
• Trim trees within falling distance of your building.
• Double check all hoses are disconnected, drained and stored.
• Ensure exterior faucets/bibs are shut off and covered with insulation.
• Be sure all exterior faucets/bibs have a shut-off valve inside the building, if not call a plumber.
• Hire a licensed professional to inspect your fire protection sprinkler systems.

Take Action Now

Don’t wait for the next storm to hit. Encourage your clients to review coverages, plan ahead and keep their business operational all season long. Interested in more tips for winter preparedness?  Learn more from the Insurance Institute for Business & Home Safety.