As summer 2025 draws to a close, businesses across the U.S. are still recovering from a season marked by extreme weather and supply chain chaos. From devastating floods to delayed shipments, the disruptions have been a stark reminder of how vulnerable operations can be—and how vital business interruption insurance is in protecting the bottom line.
🌧️ This Summer’s Wake-Up Call: Weather Disruptions in the Northeast
Summer 2025 brought a volatile mix of heat waves, flash flooding, and severe thunderstorms to the Northeast. Businesses across New England faced repeated disruptions such as intense humidity and sudden downpours that overwhelmed drainage systems and caused localized flooding.
In cities like Boston, Hartford, and Albany, transportation delays and power outages impacted everything from retail operations to healthcare services. Meanwhile, rural areas saw crop damage and infrastructure strain, affecting agricultural businesses and supply chains.
These unpredictable weather swings—marked by alternating heat surges and storm systems—highlighted the growing need for resilient business continuity plans. For many, the disruptions served as a reminder that even without a major hurricane, the Northeast is not immune to climate-driven operational risks.
📦 Supply Chain Disruptions: A Hidden Risk to Business Continuity
This summer’s extreme weather didn’t just impact storefronts—it rippled through supply chains nationwide. Delays in raw materials, transportation bottlenecks, and vendor shutdowns left many businesses unable to fulfill orders or maintain inventory. Even companies with undamaged facilities faced revenue losses due to supplier interruptions. Business interruption insurance with contingent coverage can help bridge these gaps, offering protection when your operations are affected by disruptions beyond your control.
🛡️ How Business Interruption Insurance Helps
Business interruption (BI) insurance is designed to cover lost income and operating expenses when a covered event forces your business to temporarily close or scale back operations. Here’s how it can help in scenarios like this summer’s:
- Lost Revenue: If your business had to shut down due to flooding or supplier delays, BI insurance could replace the income you would have earned.
- Fixed Costs: Coverage can include rent, utilities, and payroll—even if your operations are paused.
- Temporary Relocation: If your facility is unusable, BI insurance may cover the cost of moving to and operating from a temporary location.
- Supply Chain Disruption: Some policies offer contingent business interruption coverage, which protects you if a key supplier or partner is affected—even if your own property isn’t damaged.
🔍 Lessons for Business Owners
- Review Your Coverage Scope
Not all BI policies are created equal. Take time to understand what events and circumstances your policy includes—and where there may be gaps. - Understand Waiting Periods
Most policies have a waiting period (often 48–72 hours) before coverage kicks in. Know what yours is and plan accordingly. - Document Everything
In the event of a claim, detailed records of income, expenses, and losses are essential for a smooth claims process. - Consider Add-Ons
Ask your insurance agent about contingent BI and extra expense coverage—these can be lifesavers when your business is affected indirectly.
📈 Looking Ahead
With climate change fueling more frequent and intense weather events, business interruption insurance is no longer optional, it’s a strategic necessity. As we reflect on the disruptions of summer 2025, now is the time to assess your risk exposure and ensure your coverage is up to date.
Need help reviewing your business interruption policy? Reach out to your insurance agent to make sure you’re protected before the next storm hits.
There for You: Acadia Insurance
At Acadia, we’re all about helping businesses throughout the Northeast thrive. Our mission is to provide superior service and products as close to you as possible, providing you with the coverage you need to proceed with confidence.
We understand what you want most from your insurance is security and peace of mind. That means knowing you are working with an insurance provider who will support you every step of the way to help you protect your business.
With Acadia, not only can you get coverage tailored to your needs, but you will also receive support from dedicated claims professionals to guide you through the claim process in the event of a loss. That way, you know exactly what to expect. Knowing your claims professional by name and a handshake – that’s “Closer Coverage”. Get to know more about how we work and find an agent near you by going to the Find an Agent section on our public website (www.acadiainsurance.com).
Acadia is pleased to share this material for the benefit of its customers. Please note, however, that nothing herein should be construed as either legal advice or the provision of professional consulting services. This material is for informational purposes only, and while reasonable care has been utilized in compiling this information, no warranty or representation is made as to accuracy or completeness. Recipients of this material must utilize their own judgment in implementing sound risk management practices and procedures.
