A fast-moving summer thunderstorm may not have the drama of a hurricane or tornado, but for small business owners, the damage can be just as disruptive.
In June, a line of severe storms tore through the Northeast, snapping trees, downing power lines, and leaving tens of thousands without power. As the threat of summer storms looms, agents who guide small businesses toward practical, preventive steps can position them for increasingly unpredictable weather.
“We’re seeing more inland hurricanes,” said Sean Briscoe (pictured), VP of loss control at Pennsylvania Lumbermens Mutual Insurance Company (PLM).
“Storm activity is happening in places people don’t typically expect it. Preparation means knowing the condition of your property on a sunny day in August, not waiting until after a risk occurs.”
One of the biggest misunderstandings among policyholders, Briscoe said, is assuming flood damage is automatically covered under standard commercial property policies.
“Flood is not an automatic,” he said. “A lot of folks think, ‘I’m not near the ocean, so I’m fine.’ But with a ton of rain in a short period, even a small creek can cause flooding. You need to be aware of your surroundings and the risks they pose.”
This misconception can be costly for small businesses, particularly when losses include not just building damage but also ruined inventory, equipment, and lost revenue. Briscoe urged agents to help clients review their policies with an eye toward perils that are excluded or require separate coverage.
“Do you have the right building limits? Is your business income coverage adequate? What about your personal property for the business? Are those limits still appropriate, or should they be increased?” he said.
“Post-COVID, housing and construction markets have changed: prices for materials have fluctuated, and the cost to replace or repair a building today is very different from ten years ago. Across the country, those costs can change fast.”
While roof collapses from snow and ice remain a winter concern in the Northeast, Briscoe pointed out that the real vulnerabilities often emerge in regions unaccustomed to certain weather events.
“In the Carolinas, roofs may not be designed for heavy snow loads,” he said. “When unusual weather hits, those buildings are more likely to fail. As weather patterns change, businesses in all regions need to think beyond what’s ‘normal’ for their area.”
Flat roofs, poor drainage, and surrounding vegetation can all increase vulnerability during storms. Briscoe recommended regular inspections to catch issues early.
“If rain gutters are clogged, water can flow into the building instead of away from it,” he said. “Vegetation that grows up against the building can hide cracks or deterioration. An annual walk-around can reveal problems before they become losses.”
Technology is emerging as a powerful ally in storm risk mitigation. Briscoe pointed to affordable, connected sensors that can detect changes in temperature or water levels. These tools can be particularly valuable for small businesses without on-site staff during off-hours or weekends.
“There are cellular and Wi-Fi-based systems that alert you to dramatic temperature drops, which could signal a freezing pipe,” he said. “Exterior water sensors can warn of rising water before it gets inside. You can’t move the building to higher ground, but you can move equipment or inventory to safer areas if you have advance notice.”
For agents and brokers, storm season is an opportunity to strengthen relationships by being proactive.
“At minimum, policyholders should do an annual property survey,” Briscoe said. “Look for drainage issues, overgrown vegetation, or roof wear. Encourage them to think about their surroundings — are there bodies of water nearby that could swell in a storm?”
He stressed that preventive maintenance should not be a one-time checklist item.
“Awareness has improved over the last couple of years among both policyholders and brokers, but you can’t just set limits in 2020 and never look at them again,” said Briscoe.
