Weather Risk Concerns Surge Among Commercial Property Stakeholders

Nationwide survey reveals severe weather worries now a top concern for commercial property owners in wildfire-prone states and hurricane regions.

Commercial property stakeholders are increasingly worried about severe weather events, with concern jumping significantly since 2023, especially in states prone to wildfires and hurricanes, according to a recent Nationwide survey.

This heightened concern comes as property damage from natural disasters affects roughly one-third of property owners nationwide, and more than half in high-risk regions, Nationwide found.

“Our research shows one-third of property owners have faced natural disaster damage in the past five years, and that number jumps significantly to over half in wildfire-prone states and nearly two-thirds in hurricane-prone states,” said Mark McGhiey, leader of Risk Management and Client Services at Nationwide. “This data highlights the urgent need for property stakeholders to not only be aware of these risks, but to take proactive steps in mitigating them.”

The 2025 Commercial Lines Protection Survey surveyed commercial property stakeholders — property owners, business owners and construction firms — as well as independent agents that sell commercial property coverage.

Severe Weather Risk Perception

Nationwide found that 73% of commercial property stakeholders ranked severe weather as a top concern, approaching the 76% who cited government regulation/zoning change worries as their top risk. Severe weather concerns were even higher in wildfire-prone states (94%) and hurricane-risk states (88%), where it ranked ahead of government regulations.

Specific weather threats have seen notable increases in perceived risk since 2023, Nationwide found. Damaging winds topped the 2025 list of perceived weather risks for commercial property at 88% nationally, up 18 points from a 2023 survey. Flood and lightning were both cited by 78%, up 12 and 13 points respectively.

Of note, perceived wildfire risk was only 24% nationally, down 24 points. But in wildfire-prone states, wildfire was the top perceived risk at 95%, followed by damaging winds (86%) and severe heat wave (77%). In hurricane-risk states, the top perceived risk was tropical storm/hurricane (96%), followed by damaging winds (90%) and tornado (88%).

Asked to identify the top risks to property and businesses from severe weather, respondents nationally cited structural damage (50%), business interruption (41%) and roof damage (38%), as their top three. In wildfire-risk states, the top three business risks shifted to smoke/fire damage (69%), structural damage (56%) and damaged electrical systems (37%). For hurricane-risk states, the top three business risks were roof damage (47%), structural damage (45%) and water intrusion/flood damage (40%).

Severe Weather Losses Incurred

Nationally, 32% of commercial property stakeholders reported they have incurred damage from severe weather in the past five years. That percentage rises to 54% in wildfire-risk states and 63% in hurricane-risk states, the survey found.

Among property owners that had property damage, the top five types of damage were:

Broken windows, 43% and unchanged from 2023.
Structural damage, 41%, down 11 points.
Damaged electrical systems, 39%, unchanged.
Roof damage, 37% down 12 points.
Business interruption, 37%, down 13 points.

The financial and operational impact of these events has been substantial. While most affected property owners (71%) reported recovery costs under $10,000, nearly a quarter (23%) faced expenses between $10,000-$50,000, and 8% had more than $20,000 in costs.

Among those with property damage, 46% said all damage was covered by insurance, Nationwide found.

Mitigation Strategies and Solutions

While 95% of national property stakeholders said they have a response plan in place in the event of severe weather damage, 1 in 5 agents (19%) estimate that less than half of their clients have a risk management plan in place to prevent weather disruptions, Nationwide reported.

In addition, commercial property stakeholders are doing less to proactively mitigate risks, suggesting economic uncertainty and increased construction costs are barriers to taking action, according to the report. Only 31% of national stakeholders report willingness to invest in measures that improve their properties’ resilience to weather events, a 22-point drop from 2023.

Despite these challenges, the survey tracked the actions commercial property stakeholders willing to invest are taking to protect their properties. The top mitigation actions taken nationally are installed weather-resistant doors and windows, 73%, installed backup power systems, 60% and installed storm shutters or reinforced windows for hurricanes/tornadoes, 57%.

In wildfire risk states, the top efforts were landscaped or modified property to manage wildfire risk, 85%, developed or updated an emergency preparedness plan, 71%, and installed weather-resistant doors and windows, 44%.

In hurricane-risk states, the top actions were installed storm shutters or reinforced windows for hurricanes/tornadoes, 78%, installed weather-resistant doors and windows, 72%, and developed or updated an emergency preparedness plan, 71%.

Obtain the full report here. &

The R&I Editorial Team can be reached at [email protected].

Public Companies: Facing More SEC Scrutiny Over the Disclosure of Cyber Incidents? Your Insurance Can Help

QBE launches two new coverage enhancements in the face of regulatory enforcement of cyber incident reporting shortcomings.

By: QBE North America | April 9, 2025

As cyber incidents grow more sophisticated and frequent, public companies are encountering increased scrutiny from the SEC (Securities and Exchange Commission) especially around cyber incident response procedures and disclosures. Following the release of cybersecurity disclosure rules in 2023, the SEC has ramped up enforcement efforts. This year, it also announced the creation of a Cyber and Emerging Technologies Unit.

“We’ve seen a growing number of SEC enforcement actions tied to how companies handle disclosures related to cyber incidents,” said Meredith Brown, head of U.S. cyber and E&O, QBE North America. “Given the increasing regulatory scrutiny, it’s critical for companies to regularly review and refine their cyber incident response plans and disclosure processes to ensure compliance.”

The heightened enforcement has many public companies asking how their insurance coverage would respond — especially as cyber incidents become more complex. Some carriers, like QBE, are stepping up with coverage enhancements designed to address this uncertainty.

How Does Insurance Respond to New Regulatory Actions?

Meredith Brown, head of U.S. cyber and E&O, QBE North America

“Traditional cyber policies typically tie regulatory actions to specific privacy events,” Brown said. “The trigger is usually a violation of a privacy regulation, but SEC regulations are not privacy regulations.”

This creates an avenue for enforcement around cyber events that are not contemplated by cyber policies. As the SEC steps up its enforcement activity, more insureds are likely to submit these types of claims. Many of these claims could also have a D&O component as well since SEC actions often name an individual.

“While D&O policies may cover certain exposures, they often don’t address the associated risks and there could be a gap in coverage depending on the focus of the enforcement action,” Brown said.

New Regulations Call for More Support

With more scrutiny from the SEC, public companies must enhance their risk management efforts — especially in the immediate aftermath of a cyberattack.

While many companies already have incident response plans – in addition to cybersecurity professionals and attorneys who are well versed in breach response – they should consider bringing in legal experts who have experience with SEC disclosure requirements.

External counsel can help ensure accuracy in disclosures and reduce the risk of increased regulatory attention. This support is especially valuable given the relatively recent and still-evolving nature of the SEC’s rules.

Companies should also closely monitor emerging technologies, as the SEC appears to be poised to pursue these types of investigations. As organizations adopt new digital tools, their risk exposure grows and so must their preparation.

“The SEC announced a Cyber and Emerging Technologies Unit to help protect retail investors,” Brown said. “Their focus includes compliance in the use of emerging technologies like Artificial Intelligence.” She added, “This move reinforces the need for companies to strengthen their incident response frameworks and ensure the proper disclosure of cybersecurity incidents.”

Two Coverage Enhancements to Respond to Increased Regulatory Scrutiny

To help companies navigate this increasingly complex environment, QBE has introduced two new coverage enhancements.

The first is an SEC Disclosure Costs Coverage. This enhancement covers costs associated with engaging external legal counsel to advise on post cyberattack compliance with SEC regulations. This coverage is “crucial,” Brown explained, because legal experts with SEC experience can help companies understand exactly what is required by the SEC post incident.

The second is an Enhanced SEC Regulatory Coverage. This enhancement provides coverage for violations of SEC regulations—addressing a gap in traditional cyber policies, which typically only cover privacy-related regulatory violations.

“This enhancement directly addresses that gap,” Brown said. “Together, these additions help companies feel confident they have the coverage they need to protect their businesses as the SEC’s approach continues to evolve.”

The response from brokers has already been “very positive,” Brown said, indicating the market’s demand for cyber insurance solutions that better protect public companies.

To learn more, visit: https://www.qbe.com/us/cyber.

QBE makes no warranty, representation, or guarantee regarding the information herein or the suitability of these suggestions or information for any particular purpose. QBE hereby disclaims any and all liability concerning the information contained herein and the suggestions herein made. Moreover, it cannot be assumed that every acceptable risk transfer procedure is contained herein or that unusual or abnormal circumstances may not warrant or require further or additional risk transfer policies and/or procedures. The use of any of the information or suggestions described herein does not amend, modify, or supplement any insurance policy. Consult the actual policy or your agent for details about your coverage. QBE and the links logo are registered service marks of QBE Insurance Group Limited. © 2024 QBE Holdings, Inc.

This article was produced by the R&I Brand Studio, a unit of the advertising department of Risk & Insurance, in collaboration with QBE North America. The editorial staff of Risk & Insurance had no role in its preparation.

QBE North America is a global insurance leader focused on helping customers solve unique risks, so they can focus on their future. QBE operates out of 27 countries around the globe, with a presence in every key insurance market. QBE insurance companies are rated "A" (Excellent) by A.M. Best and "A+" by Standard & Poor's.