Severe Weather Events Create Enhanced Risks

Property & Casualty, Risk

During the past decade we have unfortunately experienced an increase in the frequency of severe weather events. Such events come in varying forms, with the most damaging featuring large quantities of precipitation and/or wind damage.

The question for your organization isn’t how you can stop weather events from occurring, but rather how can you make sure your organization is prepared for the potential of severe weather disrupting your normal business operations.

The enhanced risk of weather events calls for your organization to review your contingency plans, emergency action procedures and insurance policies. Fortunately, even if your organization doesn’t have in-house risk management experts, you can likely rely on your business partners to assist with this process.

Here are a few things your organization should consider:

  • Understand your potential weather exposures. The location of your facilities will be the largest factor in determining the types of weather events you could experience. Look at the history of your facilities and location to help you determine the weather threats you may face.
  • Emergency action and continuity planning. Every organization should have emergency action procedures and continuity plans for unforeseen situations. If you have a plan, it should be reviewed and practiced on a regular basis. If you don’t have a plan, your organization should strongly consider creating one in the near future.  This includes working with contractors and business partners to understand the probable restoration requirements.
  • Insurance review: Your organization likely has policies in place to help restore your operations after a loss. A regular review of your risks, policies, and limits could make sure you have the coverage you need if you are recovering from an unforeseen weather event.

The last few years have shown us how weather can disrupt an organization’s normal operations. Taking the time to review your procedures and prepare for such events is a good risk management practice and a good investment of time.

Key Takeaway

While your organization has no control over extreme weather, your organization does control your preparation for unexpected events. We encourage you to review your contingency plans, emergency procedures and review your insurance policies with your M3 Account Team.


Robert Hanna is a risk manager for M3 Insurance. He partners with organizations of all types to proactively manage their risks. 

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