Welcome to an insightful conversation with Simon Glairy, a renowned expert in insurance and Insurtech, specializing in risk management and AI-driven risk assessment. With summer storms posing an increasing threat to small businesses across the country, Simon offers invaluable advice on how these enterprises can safeguard their properties and navigate the complexities of insurance coverage. In this interview, we dive into the unique challenges posed by unpredictable weather, the importance of understanding policy details, the role of technology in risk prevention, and practical steps business owners can take to stay prepared. Let’s explore how small businesses can weather the storm—literally and financially.
Can you walk us through why summer storms are becoming such a significant concern for small businesses?
Absolutely, Abigail. Summer storms are intensifying due to shifting weather patterns, and they’re often underestimated compared to larger events like hurricanes. These storms can bring heavy rain, high winds, and flash flooding in a very short time, causing significant damage to small businesses. We’re seeing power outages, structural damage, and ruined inventory, which can halt operations for days or weeks. For a small business, that downtime often means lost revenue they can’t easily recover. The unpredictability and frequency of these storms are what make them a growing threat, especially in areas not used to such weather extremes.
What specific types of damage from summer storms tend to hit small businesses the hardest?
The most impactful damages are often related to water and wind. Flooding, even from a nearby creek overflowing, can destroy inventory, equipment, and critical documents. Wind damage, like fallen trees or debris hitting a building, can lead to costly repairs for roofs or windows. Power outages are another big issue—they disrupt operations, spoil perishable goods, and can even affect customer trust if a business can’t reopen quickly. These damages aren’t just physical; they translate into financial strain through lost income and unexpected repair costs.
Can you explain the term ‘inland hurricanes’ and why they’re catching people off guard?
Sure, ‘inland hurricanes’ is a term we use to describe severe storm systems that bring hurricane-like conditions—intense winds and torrential rain—far from coastal areas where people typically brace for such weather. These storms are showing up in regions that aren’t prepared for them, like parts of the Midwest or inland Northeast. Business owners in these areas might not think to prepare for flooding or high winds because it’s not historically common, so when a storm hits, the damage can be devastating due to a lack of readiness.
How can small business owners prepare for weather events that aren’t typical for their region?
Preparation starts with awareness. Business owners should research the evolving weather risks in their area, even if it’s not something they’ve faced before. Simple steps like elevating inventory off the ground, securing outdoor equipment, and having a basic emergency plan can make a huge difference. I also recommend consulting with insurance agents to understand specific risks and coverage options. Building relationships with local contractors for quick repairs after a storm can help, too. It’s about thinking ahead, even for the unexpected.
Why do you think so many small business owners mistakenly believe flood damage is included in their standard insurance policies?
A lot of it comes down to a lack of clear communication or understanding of insurance terms. Many business owners assume a standard commercial property policy covers all water-related damage, but flood damage is typically excluded and requires a separate policy. There’s also a misconception that if you’re not near a coast, flooding isn’t a risk. In reality, heavy rain can turn a small stream or poor drainage into a major problem. Without someone walking them through the fine print, they often don’t realize the gap until it’s too late.
What’s one practical way insurance agents can help clear up confusion around flood coverage for their clients?
Agents can make a big impact by taking the time to educate their clients during policy reviews. They should explain what’s covered and what’s not, using real-world examples—like how a sudden downpour could flood a basement—and map out nearby water risks. Offering a checklist of potential exclusions and encouraging clients to ask questions helps demystify the process. It’s about building trust and ensuring business owners know exactly what protection they have before a storm hits.
What are some critical elements small businesses should focus on when reviewing their insurance policies to avoid surprises after a storm?
First, check your building limits—does the policy cover the full cost to rebuild at today’s prices? Then, look at business income coverage, which protects against lost revenue during downtime. Personal property limits for equipment or inventory should also be reviewed to ensure they’re up to date. It’s crucial to identify exclusions, like flood or sewer backup, and consider additional riders if needed. A thorough review helps spot gaps before they become costly problems after a storm.
How can technology play a role in helping small businesses prevent or minimize storm damage?
Technology is a game-changer for small businesses, especially with affordable tools now available. Connected sensors can monitor temperature drops to prevent frozen pipes or detect rising water levels to warn of flooding. These devices often send alerts to your phone, so you can act even if you’re not on-site. For businesses that aren’t staffed 24/7, this early warning can mean the difference between minor inconvenience and major loss. It’s a small investment that can save thousands in damages.
Can you share an example of how certain properties or regions are more vulnerable to unexpected weather patterns?
Absolutely. Take the Carolinas, for instance. Many buildings there aren’t designed to handle heavy snow loads because it’s not a common occurrence. When an unusual winter storm hits with significant snowfall, roofs can collapse under the weight. This vulnerability comes from construction standards based on historical weather, not accounting for changing patterns. It’s a reminder that businesses everywhere need to rethink what ‘normal’ weather means for their area and prepare accordingly.
What advice do you have for our readers who want to protect their small businesses from the growing threat of summer storms?
My biggest piece of advice is to be proactive, not reactive. Start with a property inspection—look for issues like clogged gutters, weak roofs, or nearby vegetation that could cause problems in a storm. Review your insurance policy annually with your agent to ensure it matches today’s risks and costs. Invest in simple tech like water sensors for early warnings. And finally, have a plan—know who to call for repairs, where to move inventory, and how to communicate with customers if you’re shut down. A little preparation goes a long way in keeping your business resilient.
