MALVERN, PA — Lightning strikes are a significant threat to small and medium-sized enterprises (SMEs), causing billions of dollars in damages each year, according to the Insurance Information Institute (Triple-I) and the Lightning Protection Institute (LPI). Beyond physical damage, these events can result in substantial business interruptions and financial losses, stressing the need for proactive risk mitigation.
“Recovery costs from lightning can be devastating to a business,” said Tim Harger, executive director of LPI. “Not only can it cause damage to structures and electrical systems, but it can result in business interruption and lost income. Every SME should assess their risk and take action before a strike happens. It’s the first step to protecting their operations — and their future.”
National Small Business Week places a spotlight on the critical need for professionally designed, installed, and certified lightning protection systems, along with adequate insurance coverage. Such measures can dramatically reduce a business’s vulnerability to lightning-related damage.
The risks are particularly acute for smaller businesses, which often lack the resources of larger companies to prepare for disasters. According to the Small Business Administration (SBA), 40% of small businesses do not reopen after a disaster, while 25% fail within a year, and over 90% close within two years.
“Larger commercial businesses have been ahead of the curve in terms of predicting and preventing risk,” said Sean Kevelighan, CEO of Triple-I. “They often have an onsite risk manager to identify, assess and manage potential risks that could negatively impact the business.”
“While larger commercial businesses tend to be more informed on the benefits of insurance as well as predicting and preventing risk, oftentimes smaller and mid-sized businesses simply do not have the resources, and ironically, they are most at risk when disaster strikes,” Kevelighan added.
Experts recommend a multi-layered approach to lightning risk mitigation, including certified protection systems, surge protection, and comprehensive insurance packages such as property insurance, business income coverage, and utility services endorsements. These strategies help ensure not only a faster recovery but also the long-term survival of SMEs following lightning-related disasters.
With proper preparation and investment, small businesses can protect their operations against the unpredictable effects of lightning and other natural disasters.
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