Constant news of hurricanes, fires and floods has led many to believe that natural disasters are increasing. The costs associated with these disasters are also increasing. The NASA Earth Observatory states, “Climate change may not be responsible for the recent skyrocketing cost of natural disasters, but it is very likely that it will impact future catastrophes.”
Climate change is a growing risk. Here’s why businesses need to prepare.
According to NOAA’s National Centers for Environmental Information, the U.S. experienced 14 separate billion-dollar disaster events in 2018. The total cost was $91.0 billion, the fourth highest cost on record. In 2017, natural disasters cost the U.S. $312.7 billion.
Both individuals and businesses alike suffer from the property damage caused by natural disasters. In many regions, it’s increasingly vital to maintain adequate insurance with coverage for wildfires, hurricanes and floods, but coverage rates are not as high as might be expected. According to Carrier Management, only about half of the homes and businesses impacted by Hurricane Harvey had flood insurance.
Even for those who want it, obtaining insurance may be increasingly difficult. After a series of destructive wildfires in California, finding coverage is getting more difficult, and more expensive.