Natural disasters are occurring more often than ever, and as a business owner, it’s no longer enough to hope for the best. Being prepared for a natural disaster must be a part of your business strategy. According to a 2025 report by the Congressional Research Service, 40% of small businesses never reopen after a disaster, and another 25% fail within a year.¹ It’s a clear reminder that having a plan in place before disaster strikes can mean the difference between recovery and permanent closure. You can’t predict when a weather emergency will occur, but you can make sure your business is ready when it does.

1. Understand the Risks

The first step in preparing your business for natural disasters is understanding the risks specific to you. For example, a restaurant in Miami should prepare for hurricanes and floods, while a manufacturing plant in Northern California should consider the risks associated with earthquakes and wildfires. The Federal Emergency Management Agency (FEMA) provides detailed hazard maps and historical data that can help you understand the risks in your region.

It’s also a good idea to complete a risk assessment with local emergency management agencies, insurance providers, or risk consultants. Consider FEMA’s Preparedness Toolkit as a starting point. Additionally, the Ready Rating Program from the American Red Cross offers a free self-assessment to evaluate your business’s level of preparedness. 

2. Create a Business Continuity Plan

Once you understand your risks, the next step is to build a business continuity plan (BCP). Your plan should outline how your business will keep running (or bounce back) from a natural disaster. The goal of this plan is to keep people safe, protect your assets, and restore business operations as quickly as possible.

A strong BCP should include:

• A list of critical business functions
• A communication plan for staff and customers
• Protocols for remote work
• Details on data backup and system recovery
• Contact information for suppliers, insurers, and emergency services

The plan should also walk through realistic “what-if” scenarios. For example, if you rely on a single supplier, what happens if they shut down for a month? If your power is out for a week, how will you operate? If your team cannot access the office, can they work remotely? The more specific and tested your plan is, the better.

Employee safety should be a central part of your BCP. This includes having a clear and up-to-date emergency action plan (EAP) that outlines what employees should do in the event of a natural disaster. Your EAP should cover evacuation routes, shelter areas, emergency contacts, and specific responsibilities for team members. These details should be communicated in advance and reviewed regularly to reflect any changes in risks or operations. Start by taking advantage of OSHA’s interactive Evacuation Plans and Procedures eTool to create an EAP that is sure to protect your team and comply with OSHA’s emergency standards.

3. Take Action and Protect Your Business

A written plan is important, but you must also take concrete steps to protect your business before a weather emergency occurs. This includes preparing your finances, your property, and your team. The more you do ahead of time, the less scrambling you’ll have to do in the middle of a crisis.

Start with your finances. An emergency fund, even a small one, can give you breathing room during any disruption caused by weather. Aim to save at least one or two months of basic operating expenses. That money can help cover payroll, pay suppliers, or manage repairs if your business is damaged. Make sure those funds are easy to access so you’re not delayed in an urgent situation. Having this cushion in place can buy you time while you recover. Documenting losses is also important. If you ever need to apply for assistance through FEMA or the Small Business Administration (SBA) Disaster Assistance, you will need clear, organized records. So keep copies of receipts, bank statements, and insurance policies.

You should also take a close look at your insurance coverage. Standard policies do not always include damage from floods, earthquakes, or long-term closures. Contact your insurance agent to go over what your current policy covers and where you might need to add more protection. The SBA’s website also offers guidance on choosing insurance that fits your business and location. Once you’ve updated your coverage, keep your policy information where you can access it quickly.

Protecting your physical space is another key part of preparation. Walk through your property and think about how it would hold up in a flood, fire, or storm. Raise equipment and inventory off the floor if you’re in a flood zone. Clear flammable material away from your building if wildfires are a risk. Store important documents in fireproof and waterproof containers. If you rely on vehicles, tools, or equipment to run your business, have a plan to secure or move them quickly. You may also want to consider renting a secure, off-site storage facility in a “safe zone” to keep equipment, supplies, and records. Keeping some items in a separate location during a disaster can help you resume operations faster if your main location is temporarily inaccessible.

How to Prepare for Different Types of Natural Disasters

Different types of disasters require different approaches. While your overall preparedness plan should be comprehensive and cover all potential disasters, it’s also important to think through how your business would respond to specific scenarios. Below are some tips for dealing with the most common types of natural disasters faced by U.S. businesses:

• Hurricanes: If your business is located in a hurricane-prone region, like the Southeastern U.S., preparation should begin before hurricane season, which typically runs between June and November. Secure windows with storm shutters or impact-resistant glass. Back up your data, and make sure your electronics are elevated above ground level to avoid flood damage. Develop a clear evacuation plan and make sure employees know the steps to take if a storm is approaching. Stock essential supplies such as flashlights, batteries, bottled water, and a first aid kit. Make sure your team understands local evacuation zones and when to leave.
  
  
• Wildfires: Businesses in wildfire-prone areas like California, Oregon, or parts of Colorado should clear dry brush, dead trees, and flammable material from the perimeter of their property. Use fire-resistant building materials when possible, especially for roofing and siding. Install air filtration systems if smoke could affect your workspace or inventory. Communicate evacuation routes to your staff and establish a check-in procedure to account for everyone’s safety. If wildfire smoke affects air quality, consider providing N95 masks.
  
  
• Tornadoes: For businesses in the Midwest or Great Plains, being prepared for a tornado is essential. Identify a safe shelter location on-site, such as a basement or interior room without windows. Make sure employees know where to go during a tornado warning. Consider installing NOAA weather radios and subscribing to emergency alerts. Secure heavy furniture and equipment to the walls to prevent injuries. Store physical records and inventory in reinforced or interior areas whenever possible. Conduct tornado drills at least once a year so employees are ready if the time comes.
  
  
• Earthquakes: In earthquake-prone regions, such as California or parts of the Pacific Northwest, businesses should secure shelves, cabinets, and equipment to prevent them from falling during a quake. Install seismic shut-off valves for gas lines to prevent fires. Consider a structural assessment if your building is older, and retrofit where needed. Train your team in basic earthquake response, drop, cover, and hold on. Make sure to keep emergency kits with food, water, and first aid supplies. Provide safety training so employees know how to respond during and immediately after a quake.
  
  
• Flooding: Flood risk isn’t limited to coastal cities. Any area near rivers or with poor drainage is vulnerable. Elevate electronics, important documents, and inventory off the floor. Install sump pumps or flood barriers if your property is in a low-elevation area. Seal cracks in foundations and basement walls. Purchase flood insurance, as standard commercial property policies usually don’t cover it. Take photos of your business interior and inventory in advance for documentation. Sign up for flood alerts through the National Weather Service and create a flood response plan that includes when to shut off power and evacuate.
  
  
• Winter Storms: If your business operates in regions with severe winter weather, prepare for snow, ice, and power outages. Insulate pipes to prevent freezing and bursting, and keep salt or sand on hand for walkways and driveways. Maintain backup power options like generators, especially if your business depends on refrigeration or heating. Communicate inclement weather policies with employees and customers ahead of time.
  
  
• Heatwaves: Extreme heat can stress infrastructure and pose health risks to employees. If your business doesn’t already have air conditioning, consider installing it or providing temporary cooling systems. Encourage hydration and create shaded rest areas if employees work outdoors. Monitor indoor temperatures and adjust hours or workloads if necessary. Sensitive equipment and inventory, such as electronics or perishable goods, may need to be relocated to cooler storage. If applicable, rotate outdoor tasks when possible and require that employees take frequent breaks.

For additional guidance on preparing your business for natural disasters, visit OSHA’s Emergency Preparedness and Response page. It provides detailed information to help business owners plan for and respond to a wide range of emergencies, including those caused by natural disasters and extreme weather.

Conclusion

Natural disasters can happen anywhere, often with little warning. But when your business is prepared, you’ll be in a much stronger position to respond, recover, and reopen. By understanding your risks, building a solid continuity plan, and protecting your operations, you can minimize disruptions and protect your livelihood. Preparedness doesn’t have to be overwhelming. Start with one step, whether that’s reviewing your insurance coverage, backing up your files, or walking through a “what-if” scenario with your team. Every action you take now could make a major difference when the unexpected happens.

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Sources
1. Congressional Research Service. Federal Disaster Assistance for Businesses: Summaries and Policy Options. Library of Congress, March 25, 2025. https://www.congress.gov/crs-product/R47631