As forecasts point to a slightly less active 2026 Atlantic hurricane season, brokers and agents are being urged not to let their clients fall into a false sense of security.
While early projections suggest reduced storm activity, industry experts warn that even a single severe event can trigger significant property damage and prolonged business interruption.
Sean Briscoe (pictured), vice president of loss control at Pennsylvania Lumbermen’s Mutual Insurance Company (PLM), told Insurance Business that preparedness must remain front and center regardless of seasonal outlooks.
“We take forecasts with a grain of salt,” Briscoe said. “We look at multiple sources and factor them in, but from an insurance perspective, you can’t really act until a storm happens. What you can do is prepare your clients for the worst and hope for the best.”
Carriers’ caution has been grounded in recent loss trends. According to data from the National Oceanic and Atmospheric Administration (NOAA), the US has experienced a steady rise in billion-dollar weather disasters, with total damages exceeding $100 billion in several recent hurricane seasons. Even quieter years have produced large losses due to a handful of high-impact storms.
Briscoe warned that the perception of a “lighter” season can lead to dangerous complacency among policyholders. “Even in a light hurricane season, one storm can still cause a lot of damage,” he said. “Fewer storms doesn’t mean less risk of major loss.”
Lessons from recent hurricane seasons continue to shape how brokers and agents can advise clients, especially on the importance of comprehensive planning and risk assessment.
Briscoe said businesses should regularly reassess property values, exposures, and whether their coverage reflects current operations. Equally critical is ensuring employees understand emergency protocols and their roles during a crisis.
One of the most overlooked areas, Briscoe noted, is business interruption coverage. While physical damage often takes priority in risk discussions, the financial impact of downtime can be far more devastating, particularly for small and mid-sized enterprises.
“Businesses need to understand their financials ahead of a storm where their documentation is stored and whether it’s protected,” he said. “The last thing you want is to figure that out after your building and records are gone.”
A 2024 report from the Federal Emergency Management Agency (FEMA) found that roughly 40% of small businesses never reopen after a major disaster, with inadequate insurance coverage cited as a key factor.
Beyond coverage gaps, the fundamentals of physical risk mitigation are still key, Briscoe said. Basic maintenance, such as trimming trees, inspecting roofs, and ensuring backup generators are operational, can significantly reduce losses. Businesses should also evaluate flood exposure, even in areas not traditionally considered high risk.
“In some cases, a location may never flood until the one day it does,” Briscoe said. “A heavy storm can turn a small creek into a raging river. You have to think about where your equipment and inventory are stored and whether they can be moved to higher ground.”
Recent storms have underscored how flood risk is evolving. Inland flooding from hurricane-related rainfall has caused extensive damage well beyond coastal zones, catching many businesses off guard. This shift highlights the need for broader risk awareness and, where appropriate, supplemental flood coverage.
Brokers and agents’ biggest challenge lies in effectively communicating these risks. particularly when clients are hesitant about additional costs. Briscoe recommended framing the conversation around business continuity.
“If a single-location business goes down, what’s the backup plan?” he said. “How long can they operate without income? These are the questions that make business interruption coverage real for clients.”
He also noted that while competitors may temporarily absorb displaced customers, those relationships are not easily reclaimed. “You may get help in the short term, but those customers may not come back,” he said.
As climate patterns shift and flood and catastrophe losses extend into new regions, brokers must take a proactive role in helping clients adapt. “This is a seasonal risk that isn’t going away,” Briscoe said. “If anything, it’s becoming more severe and less predictable. Businesses need to step back, evaluate their exposures, and prepare accordingly.”
