As hurricane season begins, policyholders face more than the risk of physical damage. Severe storms can disrupt operations, strain internal resources, interrupt revenue, and trigger complex insurance claims that require immediate attention. For many organizations, the challenge is not simply responding to the event itself — it is managing operational recovery and financial recovery at the same time.
Preparation can make a meaningful difference. Policyholders that plan ahead, define responsibilities clearly, and implement disciplined documentation practices are often better positioned to reduce disruption and support a more effective insurance recovery.
Preparedness Starts Before the Storm
When a hurricane threatens, the policyholder’s team does not have the luxury of building a response process in real time. Important coverage decisions, documentation protocols, and communication lines should already be in place.
A strong preparedness strategy begins with an informed review of the insurance program. Policyholders should understand how their coverage may respond to hurricane-related losses, including property damage, business interruption, and extra expense. They should also evaluate policy triggers, exclusions, endorsements, sublimits, notice requirements, and declared values. Seemingly small provisions can have a significant effect on recovery.
This review is most effective when it involves more than one function. Risk, finance, and operations personnel each bring a different perspective to the process. Together, they can better assess values at risk, identify potential gaps, and align the organization around what the policy requires in the event of a loss.
A Coordinated Team Can Improve the Claim Process
Storm response is rarely confined to one department. In the aftermath of a hurricane, the policyholder’s team may need to assess damage, stabilize operations, authorize emergency spending, communicate with insurers, and gather support for the claim — often while key systems or facilities remain impaired.
That is why role clarity matters. A policyholder is better served when responsibilities are established before the storm arrives. Finance should be prepared to track costs and maintain visibility into cash flow. Operations should be ready to lead mitigation and restoration efforts. Risk and claim support personnel should coordinate communications, monitor claim requirements, and help organize the information necessary to support recovery.
In practice, the most effective response teams are structured, cross-functional, and aligned from the outset. They also understand that insurance recovery is not a side task to be addressed later. It is part of the broader recovery effort from the beginning.
Documentation Can Shape Recovery
After landfall, the policyholder’s immediate priorities often include safety, stabilization, and mitigation. But once conditions allow, documentation becomes one of the most important steps in the recovery process.
Photographs, videos, condition assessments, invoices, contracts, change orders, and daily decision logs can all play an important role in supporting a claim. Without a disciplined approach to capturing and organizing this information, critical details may be lost over time. Even where coverage exists, incomplete records can complicate or weaken the recovery process.
A practical way to improve consistency is to establish a dedicated method for tracking hurricane-related costs. Whether through a separate loss account, project code, or other internal mechanism, the goal is the same: create a reliable record of storm-related expenses and decisions while the information is still fresh and accessible.
Policyholders should also preserve pre-loss operational and financial information wherever possible. Baseline data is often essential to demonstrating the effect of the event and substantiating the claim.
Communication Should Be Intentional
The claims process involves multiple internal and external stakeholders, and communications can move quickly after a major storm. In that environment, consistency matters.
Policyholders benefit from designating a clear point of coordination for insurer communications. A centralized approach can help reduce the risk of incomplete or inconsistent information being shared across the adjustment process. It can also help the policyholder’s team document key discussions, track requests for information, and maintain a clearer narrative around the loss and the recovery effort.
Internal communications deserve the same discipline. Decisions related to mitigation, restoration, temporary operations, and major expenditures should be documented contemporaneously. These records can become important later when the policyholder is explaining why actions were taken and how costs were incurred.
Stronger Outcomes Often Reflect Stronger Preparation
No organization can eliminate the disruption caused by a hurricane. But policyholders can take steps to improve how they respond and how they position their claims.
The organizations that are often best positioned for recovery are those that prepare before the storm, establish clear team ownership, document thoroughly, and approach the claims process as a coordinated business effort rather than an isolated insurance exercise. In a high-pressure environment, that preparation can help the policyholder’s team make better decisions, communicate more effectively, and support a more efficient path toward financial recovery.
Hurricane preparedness is ultimately about more than storm response. It is about helping the policyholder protect the business, support the people responsible for recovery, and preserve the information needed to pursue a well-supported claim.
How BDO Can Help
BDO’s Claims Recovery team works on behalf of policyholders, providing an independent and objective perspective to quantifying, compiling, and substantiating complex insurance claims. Our long history of preparing claims is respected by underwriters, adjusters, and their accountants, allowing us to recover more than $20 billion for our clients.
In addition to post-loss services, we offer a proactive approach to recovery, leveraging insurance as a risk management vehicle to help companies protect their business in the face of disruption. Our team is dedicated to assisting our clients in navigating through the complexities of an insurance claim, and we are committed to helping them receive the benefits of their policies. Find out more about our team and schedule a meeting.
Additional Resources
- Check out our case study on Hurricane Melissa: Resort Recovery After Hurricane Melissa
- Watch a recording of our recent webcast: Hurricane-Ready: Insurance Preparedness and Recovery for Organizations