Growth & Jobs | Businesses, homeowners urged to prepare for hurricane season

AS THE Atlantic hurricane season approaches, insurers are urging business operators and homeowners to make all the necessary preparations that could minimise the impact of severe weather on their property.

The advice comes as the regional insurance industry faces increased rates from reinsurers, who have been distancing themselves from the Caribbean and Latin America, citing the increasing frequency and severity of climatic conditions among the reasons.

The Atlantic hurricane season, which runs from June 1 to November 30, has over the years brought about devastating storms, leaving property owners vulnerable to damage. Despite experts predicting a slightly below-normal hurricane season in comparison to previous years, insurers say that homeowners and business operators should not let their guards down.

The forecast provided by Colorado State University in the United States indicated that there will be 13 named storms, six hurricanes and two major hurricanes (categories 3–5). Last year’s season recorded 14 named storms, eight hurricanes and two major hurricanes. There were 21 storms in 2021 and 30 in 2020, making that year the most active hurricane season on record.

In light of the forecast, insurance companies are bracing themselves for severe weather events which may result in a surge in claims and a corresponding increase in premiums.

Joseph Holness, assistant manager, reinsurance and underwriting, JN General Insurance, said storms and hurricanes can lead to substantial financial losses for homeowners and especially for business operators, and increase claims on insurance companies.

“The economic impact of hurricanes on businesses and jobs is often significant, as hurricanes often cause damage to buildings, equipment, and other assets, resulting in loss of property and supplies. Also, businesses may incur costs for repairing or replacing damaged property. These costs can add up quickly and impact the bottomline that could result in disruption in business operations,” Holness explained.

“In addition, hurricanes can disrupt supply chains as roads and bridges may become blocked or broken away, resulting in transportation delays that could affect getting access to supplies and raw materials, as well as getting finished goods out for sale. This challenge can impact production of goods and sales.”

The insurer also highlighted that business operators are also at risk of productivity and revenue loss if workers are affected by the hurricane and are unable to report to work due to injuries, severe damage to their homes, or as a result of being marooned by the weather conditions.

“Business operators who have insurance usually bounce back much quicker after a disaster. Those without insurance who may have experienced extensive damage may take a long time to recover, while some face the threat of permanent closure, resulting in loss of jobs and reduced economic activity in the community,” he said.

Holness emphasised that business operators, taking proactive steps and having a robust plan in place, can help minimise losses following a hurricane and maintain business continuity.

“The best way to protect yourself from the potential damage caused by a hurricane is to be prepared. The wise thing to do is to prepare long before a hurricane arrives, which can make a significant difference in keeping your family and property safe. Waiting until a hurricane is imminent may not give you sufficient time to take the necessary precautions,” he advised.

Holness also recommended, as part of the hurricane preparedness activities, that businesses develop and implement a detailed emergency plan that includes measures such as securing facilities and equipment, backing up data, and ensuring the safety of employees. Furthermore, he advised that homeowners and business operators install storm shutters; reinforce roof and windows; secure loose outdoor items that could become projectiles in high winds; and stock up on supplies.