Enhancing Storm Resilience: The Case for Inland Marine Coverage

Severe convective storms are among the most prevalent and financially impactful weather events affecting businesses today. In 2025 alone, 21 out of 23 billion-dollar disasters in the U.S. resulted from these storms. Data reveals a concerning trend: the average costs associated with these storms have increased significantly, with the five-year damage cost rising from $22.5 billion to $40.9 billion over the past decade, adjusted for inflation. While these figures underscore the need for appropriate risk management, they also evoke questions about preparedness and resilience among businesses.

Understanding the Reality of Severe Weather Costs

Severe weather is not just a seasonal nuisance for businesses; it's a financial burden. As the stats illustrate, the increasing damage costs from storms reflect a broader trend of intensifying weather patterns, influenced by climate change and urban development. More and more, storms are not just powerful forces of nature but economic forces that can disrupt supply chains, impair service delivery, and from an insurance standpoint, wreak havoc on cash flow. Companies need to stay ahead of potential catastrophes through proper coverage and affiliated systems that can alert them to incoming severe weather.

Awareness vs. Action: The Coverage Gap

While a majority of commercial property owners anticipate damage from severe weather—about two-thirds express high concerns according to Nationwide's survey—many fail to consider the role of inland marine coverage in their resilience plans. This discrepancy reveals a troubling disconnect: acknowledging risk doesn’t always translate into effective risk management strategies. Discussions about storm preparedness often concentrate solely on fixed structures, overlooking critical assets that may be more vulnerable during adverse weather conditions. This is particularly troubling since inland marine coverage often protects items in transit or temporary storage, both of which are particularly susceptible to storms.

Reassessing Risks Beyond Buildings

This oversight presents an opportunity for insurance agents to guide clients toward a broader view of risk management. Businesses that depend on assets that are transported, rapidly deployed, or stored temporarily should dig deeper into the storm's impact on operations and equipment. Consider businesses like construction firms where extensive equipment is frequently moved to various job sites. These companies face unique vulnerabilities since equipment can be damaged during transport or when left exposed overnight. Therefore, failure to account for these risks could mean significant financial losses without appropriate coverage.

Five Strategies to Highlight Inland Marine Coverage

1. Redefine Severe Storms as a Constant Threat

Many clients wrongly perceive major storms as infrequent anomalies that won't impact them regularly. A shift in perspective is crucial: since 2020, about two-thirds of weather-related billion-dollar disasters have been attributed to severe storms. Recognizing these risks—including hail, flood, and tornadoes—can prevent oversights in coverage and operational interruptions. Businesses need comprehensive plans that factor in prevailing weather patterns and the economics surrounding potential damages.

2. Clarify Coverage Boundaries Between Property and Inland Marine

Discussions must distinguish between standard commercial property coverage and inland marine insurance—especially regarding the movement of property. Many business owners often assume traditional policies cover all aspects of their operations, which isn't true. Understanding transitions—from storage to transport to job sites—can unveil critical gaps in existing coverage. For instance, a warehouse might be well-insured, but what happens to the freight en route to clients? That’s where inland marine coverage becomes pertinent and should be part of the conversation.

3. Bridge the Coverage Gap during Reviews

Business owners' concerns about severe storms don't always equate to adequate insurance coverage. Research indicates that around a quarter of commercial property owners acknowledge they carry insufficient coverage. Renewal discussions should evaluate current property valuations, dependencies, and potential gaps in coverage before a storm hits. Prime time for action is during annual reviews when companies can proactively address shortcomings—especially as extreme weather events become more frequent and costly.

4. Link Resilience Efforts to Everyday Operations

Resilience strategies should mirror business realities, not an abstract ideal. Agents must prompt clients to assess how their day-to-day operations could be disrupted by severe weather. For instance, staging equipment indoors or executing weather-monitoring procedures can significantly mitigate losses. Recognizing the practical measures that can be taken at the ground level can make all the difference. (And this is the part most people overlook.)

5. Integrate Inland Marine into a Complete Resilience Strategy

By incorporating inland marine considerations early in planning discussions, businesses can develop a more holistic approach to storm resilience that encompasses not just physical asset protection but also preparedness for the movement and temporary storage of critical equipment. This broader understanding can make inland marine coverage central to overall business resilience strategies, elevating it from an afterthought to an essential planning component.

The Future of Storm Preparedness

As severe weather events continue to challenge businesses across many sectors, a strategic approach to risk management is more pressing than ever. Companies must acknowledge the full scope of their risks, including the vulnerabilities associated with movable assets and operations. Insurance agents who drive these conversations can empower clients to construct more nuanced and effective storm resilience plans. As weather patterns intensify and financial repercussions rise, the dialogue surrounding inland marine coverage could determine the resilience and sustainability of numerous businesses. If you're working in this space, adapting to these evolving challenges could be the key to squaring off against nature’s most terrifying storms.