Economic impact of hurricanes on your business
Hurricanes can have a damaging economic impact on businesses, including physical damage, supply chain disruptions, and lost revenue. Learn how to better prepare.
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Hurricanes can have a damaging economic impact on businesses, including physical damage, supply chain disruptions, and lost revenue.
Hurricanes are not only natural disasters that affect homes, but they also significantly impact businesses and their infrastructure. From small mom-and-pop shops to large corporations, hurricanes can devastate all types of companies, causing property damage, disrupting supply chains, and leading to lost revenue.
Physical Property Damage
The most immediate and obvious economic impact of hurricanes on businesses is physical property damage. High winds, storm surges, and flooding can all cause significant damage to buildings, equipment, and inventory. Small businesses, which may lack the resources to repair or replace damaged property, can be devastated. Companies affected by hurricanes may need to close, adding to their financial losses.
Disruptions to Supply Chains
Even if a business can quickly reopen after a hurricane, it may face significant economic challenges. Disruptions to supply chains can make it difficult for businesses to obtain needed materials. Power outages and transportation disruptions can also hinder businesses' ability to receive and ship products. These factors can lead to production and delivery delays, causing lost revenue and damaging a company's reputation.
Loss of Customers
Another economic impact of hurricanes on businesses is the loss of customers. In the aftermath of a hurricane, many people may prioritize rebuilding their homes and lives over spending money on non-essential goods and services. This can be particularly challenging for small businesses that heavily rely on local customers. Also, companies dependent on tourism may experience a significant drop in visitors after a hurricane.
Insurance Shortfalls
Insurance can help businesses recover from the economic impact of hurricanes, but it is not always a solution for all damages. In some cases, insurance policies may not cover all the hurricane-caused damage, leaving businesses responsible for some costs. Insurance claims can also take time, delaying much-needed funds for repairs and recovery.
>>READ MORE: Hurricane Facts vs. Fiction: What You Need to Know
STEPS BUSINESSES CAN TAKE TO PREPARE
The economic impact of hurricanes on businesses can be significant and long-lasting.
Emergency Preparedness Plan
One crucial step is to have a good emergency preparedness plan in place. This plan should outline how the business will respond during a hurricane, including ways to protect property and equipment and communicate with employees and customers. The plan should also include maintaining supply chains and the timely delivery of goods and services, even in the aftermath of a hurricane. If you don’t have an emergency plan, AccuWeather For Business can help you create a plan. Schedule a consultation with our weather preparedness and business continuity expert to talk about your organization's plan.
Check with Your Insurance Provider
Another important step is to check your business insurance coverage. This may include policies that cover damage to property, lost income, and other economic losses caused by a hurricane. Businesses should work with their insurance provider to make sure they have the appropriate coverage for their needs.
IMPACT OF HURRICANE IAN
The most recent hurricane that had a significant economic impact was Hurricane Ian, causing over $112 billion in damage. It is the costliest hurricane in Florida’s history and the third-costliest in United States history, according to the NOAA. The hurricane devastated Florida's citrus growing industry, and tens of thousands of people lost their jobs and filed unemployment claims.
During Hurricane Ian, AccuWeather For Business helped clients better prepare for the storm with AssetReport™. Those clients were able to use our superior hurricane forecast track to identify company assets at risk automatically and see what storm surge, wind, and rainfall were expected over a specific timeframe.
WEATHER ANY STORM WITH ACCUWEATHER FOR BUSINESS
Partner with AccuWeather For Business and have the information you need to make the best weather-related decisions for your people and your business. You will also gain a competitive advantage by knowing the exact impact and timing of the weather.
AccuWeather's AssetReport will revolutionize how you and your organization respond to threats this hurricane season. Whether you're protecting a single asset or thousands, we provide the insights you need to enhance safety and reduce risk before, during, and after the storm.
