Commercial Insurance

Climate Change and Insurance: What It Means for Your Business

Wells Insurance
How climate change is affecting business insurance

From hurricanes along the coast to wildfires out west, the effects of climate change are no longer distant possibilities. They are shaping the insurance landscape every year. In 2024, insured losses from natural disasters topped $100 billion globally, a six-year high. And these aren’t isolated events. Floods, droughts, and other “secondary perils” are appearing in regions that have rarely faced them before.

So what does this mean for your business? And how can Wells Insurance help you prepare?

Climate Risks Are Business Risks

Unpredictable weather directly affects your bottom line. Property values shift, operations are interrupted, and rebuilding costs climb faster than expected. Unfortunately, many businesses discover too late that their insurance coverage does not reflect today’s risks, leaving them underinsured. Globally, nearly 70 percent of natural disaster losses go uninsured, adding up to $260 billion annually.

That is why being proactive matters. Regularly reassessing property values, updating coverage, and planning for the unexpected ensures your business will not be left exposed when severe weather strikes.

For a deeper look at how underinsurance can impact your assets whether in your business or at home, read our blog on The True Cost of Not Having Enough Insurance for Your Home.

Beyond a Policy: Clients Want Partnership

Today’s businesses expect more than a one-size-fits-all policy. They want personalized support, clear communication, and strategies that go beyond paperwork. Whether it is disaster preparedness guides, risk prevention workshops, or simply checking in before renewal season, these small actions build lasting trust.

At Wells Insurance, we aim to be that partner. We combine updated tailored coverage and practical resources to help you make informed decisions, not just react when disaster happens.

ESG and Climate Resilience

Another important shift is the growing role of environmental, social, and governance (ESG) strategies. More insurers are weaving climate resilience into their products, focusing on community hardening, renewable energy, and sustainability. According to PwC, 85 percent of insurers believe ESG will soon impact every area of their business.

For business owners, this means coverage options may increasingly align with sustainability goals, offering an opportunity to both manage risk and meet stakeholder expectations.

What to Expect Moving Forward

  • Rates: Some areas such as workers’ compensation may stabilize, while commercial auto and property in catastrophe-prone regions could continue to rise.

  • Technology: Tools like AI and IoT are improving underwriting and claims, but they are most effective when paired with the human touch.

  • Preparedness: Those who act early by reviewing coverage, exploring ESG-aligned options, and engaging in risk prevention will be better positioned to handle uncertainty.

How Wells Insurance Can Help

We know the insurance landscape can feel overwhelming when paired with the challenges of climate change. Our team is here to:

  • Reassess your current coverage and property values

  • Recommend strategies to reduce exposure

  • Provide educational resources tailored to your industry

  • Align your risk management with evolving ESG goals

The climate may be changing, but with the right guidance, your business can adapt and thrive.

Ready to strengthen your protection? Learn more about our Commercial Insurance solutions at Wells Insurance.