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August 27, 2019

As population and economic centers continue to grow along America’s coasts, so does the impact hurricanes can have. Pinkerton has evaluated the economic damage hurricanes have had since 1960. Each decade saw increased damage but hurricanes during the past 19 years have resulted in seven times the damage of the past 40 years. The rise in damages reflects more people and assets at risk in coastal communities.

For the 2019 season, the Colorado State University Tropical Meteorological Project predicts that twelve named storms will emerge, including six hurricanes and two that will reach major hurricane status. Many scientists project that both the frequency and intensity of major hurricanes will increase over the next several decades. In addition to direct damages, factors including workforce instability, power outages, supply chain disruptions , and other infrastructural problems can severely impact business recovery and prosperity after a hurricane. Lost market share  resulting from a major storm is an example of non-insurable loss that businesses can guard against with a sound hurricane risk mitigation plan.

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