“Underinsurance Can Leave Businesses Facing Years of Losses”
As the country continues to assess the damage caused by Storm Chandra, businesses nationwide are being urged to ensure they have adequate insurance in place and to take steps to protect their premises from any further storms that could hit Ireland in the coming weeks and months.
The call, from the insurance broker Gallagher, follows the significant damage caused by Storm Chandra across large parts of the country, as well as previous storms to hit Ireland in recent years.
During Storm Chandra, around 20,000 homes, farms and businesses were without power at the peak of the outages, while widespread flooding affected parts of Wexford, Waterford and Wicklow, disrupting trading, transport and access for many businesses. An Emergency Response Payment scheme has since been activated by Government to support those worst affected.
These impacts follow a winter already marked by severe weather disruption. When Storm Bram hit, 54,000 homes, farms and businesses lost power at the peak of the outages, with flooding and travel disruption leading to cancelled trains, flights and ferries. Some businesses were found not to have adequate stock or business interruption insurance in place.
With Met Éireann continuing to warn that Ireland is likely to experience more frequent and intense weather events, Gallagher is urging businesses to ensure they are not underinsured for damage arising from storms, flooding or related disruptions.
Laura Vickers, Managing Director of Commercial Lines at Gallagher, said:
“The time last year we had Storm Eowyn, and I know from speaking to business owners, the effects of that – even 12 months on -are still being felt. The devastation it brought with it - the strongest winds recorded in Ireland since records began, left hundreds of businesses dealing with immense property damage, stock loss and prolonged operational disruption due to power, water and communications outages”.
“We are concerned that many businesses may have underestimated how much insurance they need to fully protect themselves from storm-related damage. Storm Chandra is a timely reminder that flooding, power outages and access issues can bring trading to a standstill. Underinsurance can leave businesses facing losses that may take years to recover from.”
“There is widespread acknowledgement of how these increasing adverse weather events are detrimental to Irish small businesses and to the Irish economy, it must be said. In the last few days, Revenue has communicated that it will take a flexible approach for businesses impacted by severe weather, including arrangements around tax deadlines and debt warehousing where appropriate, but stressed that insurance remains a critical first line of defence”.
Top 10 tips on storm-proofing your business
- Make sure you are correctly insured for business interruption. In addition to rising extreme weather events, economic uncertainty and supply chain disruption all pose risks to businesses and insurance can play a vital role. Failure to obtain appropriate insurance could leave a business vulnerable to a substantial financial setback in the event of a crisis. Ms Vickers explained: “The closure of Holyhead Port following the damage caused by Storm Darragh in December 2024 is a case in point. This port closure caused considerable disruption to many businesses, including hauliers, shippers and retailers. Many consumers were also impacted as a result of the delayed delivery of online orders and Holyhead Port couldn’t fully reopen until July 2025.
- Conduct a thorough risk assessment to identify potential vulnerabilities in business operations, infrastructure, and supply chain. This is particularly important for businesses in the manufacturing, pharmaceutical, aviation, retail. hospitality, and construction sectors. Businesses that are reliant on robust supply chains, a consistent workforce and customer demand need to be up-to-speed on the costs they could face if the event of disruption to their business and ensure they have adequate insurance in place.
- Obtain guidance from a broker to ensure your business has the right insurance in place. Review policies with your broker or insurer to understand what is covered and make any necessary adjustments. Make sure you have all the required coverage in place including property insurance and business interruption insurance. If your business faces financial constraints and needs to cut costs, resist the temptation to reduce the cost of insurance by opting for minimal business interruption or other coverage. This is a risky strategy which could well prove costly in the long run.
- Take preventative action. Reinforce your premises by installing storm shutters, securing outdoor equipment, and ensuring the building structure can withstand high winds and flooding.
- If your business is located in an area prone to flooding, raise sockets, fuse boxes, wiring and any electrical devices to at least 1.5m above the floor. Keep a supply of sandbags on the premises. Store valuable items and any important documents on high-mounted shelves.
- If there is a flood warning in your area, put sandbags down in areas where water can enter the property, though be mindful that sandbags won’t help if your problem is with groundwater flooding. You should also turn off your gas, electricity and water supply. Move valuable items, equipment, documents (such as title deeds or insurance policies), money in the till and/or stock upstairs or to another premises (that is not in an area at risk of flooding) entirely. Make copies of important documents.
- If a windstorm has been forecast, lock all the windows and doors on the premises and ensure all outdoor items (such as signage and seating areas) are brought inside or are properly secured. Check the roof for any missing slates or tiles and make sure everything is secure. Park your work van or vehicles away in a sheltered area and away from trees.
- If a snowstorm or big freeze has been forecast, know where your stop valve or stopcock is located so you can turn off the water in the event of an emergency. Clear the gutters and drains to avoid a build-up of snow and ice. Ensure all external and internal pipes are insulated.
- Prioritise the safety of your employees by providing training on emergency procedures and ensuring they have access to necessary resources during a storm.
- Have a business continuity plan in place so that your business can continue to operate during, or resume as quickly as possible after, weather-related disruption.
Ms Vickers said: “Unfortunately, extreme weather events have become more frequent in Ireland and is something which we must prepare for. Storm clustering, where several storms form in quick succession is now a common occurrence among European windstorms. This phenomenon can lead to considerable damage as one storm can weaken buildings or roof structures for example, making them more susceptible to damage from subsequent storms.
If businesses don’t act now to ensure they’re adequately insured, there could be serious financial consequences. The inability to maintain operations during a crisis could lead to a significant loss of revenue, with underinsurance exacerbating the financial strain.”
