By Ann Cosimano, ARAG General Counsel

When disaster strikes, lives can change in an instant. From wildfires and hurricanes to tornadoes and floods, the U.S. has seen its fair share of significant weather and climate disasters in the past few years. And these disasters are becoming more frequent and increasingly costly.

In 2024, the U.S. experienced 27 weather and climate disasters, each reaching more than $1 billion in damages. In total, these 2024 events resulted in $183 billion worth of damages – nearly double the 2023 total of $93 billion.

Sadly, many Californians know firsthand that 2025 hasn’t started any better as they continue to recover from more than 700 wildfires in the state since January. Meteorologists warn that hot and dry conditions in California and the Southwest could accelerate yet another wildfire season this summer.

So, what does this mean for your clients? The short answer is that they must prepare for upcoming disasters now and anticipate what types of support employees will need in the aftermath of a natural disaster.

More Costly Weather Events, Fewer Insurance Options

The National Centers for Environmental Information has been collecting and analyzing data on weather and climate disasters from the past 40+ years. With this longer view, the growth trend is even more alarming. In the 1980s, the U.S. averaged 3.3 major weather events per year, with costs averaging $22 billion each year. So far, in the 2020s, those averages have increased to a staggering 23 events per year, with annual costs of nearly $150 billion.

Geographically, the South, Central, and Southeast regions in the U.S. have seen the highest frequency and cost from billiondollar disaster events. Intense hurricanes, flooding, tornadoes, and winter storms have ravaged these parts of the country.

Fewer carriers are willing to underwrite that risk in severe weather areas like California, Florida, and Texas, and this scarcity has led to costlier insurance premiums.

According to the Congressional Budget Office, “people in many high-risk areas have faced difficulty obtaining or affording insurance coverage for their property. As risk and costs increase, premiums will increase as well, which may make insurance less affordable for homeowners. If state regulators do not allow higher premiums, insurers may exit high-risk areas, reducing the availability of insurance.”

Helping Employees Impacted By A Natural Disaster

In the wake of one of these types of climate or weather events, employees can face considerable loss. So, how can you help clients support their employees’ efforts to recover and rebuild –or better yet, be more prepared going forward?

Consider these tips:

• Provide regular communication and support.

Regular check-ins with employees can help restore a sense of normalcy and relief, knowing that their employer understands the hardships they’re facing. Direct them to the appropriate local, state or federal agencies who can provide critical information and services before, during and after a severe weather event.

• Key resources include the Red Cross, FEMA and the Disaster Distress Helpline for access to crisis counsellors.

• The Homeland Security and Emergency Management departments in each state provide a wealth of information, from tips on being prepared to finding an interim shelter, returning home safely, and applyingfor relief.

• Consider creating flexible or adjusted work arrangements. If possible, added work flexibility (even if short-term) could help ease employees’ stress. This adjustment can afford employees time to manage their personal responsibilities, such as handling repair work or other appointments to recover from the disaster, while still fulfilling their work duties and earning a paycheck.

Some employers have sponsored leave-sharing plans which allow employees to donate leave to their colleagues affected by a major disaster as additional paid time-off.

By fostering a culture of preparedness, offering flexible work arrangements, and providing access to essential resources. Employers can significantly mitigate the impact of natural disasters on their workforce.

• Offer voluntary benefits that can provide much-needed assistance.

Supplementing quality medical insurance with access to mental health care resources can help employees weather the storm – physically, mentally, and emotionally.

To help employees offset added financial burdens, explore tax-advantaged financial assistance programs.

These may include employee crisis funds, qualified disaster relief payments, or retirement plans with an option to allow distributions and loans from their plans for qualified employees.

Additionally, employees may face a surprising number of legal matters after a major weather event – like dealing with property disputes, contractor issues, home insurance problems, or identity theft and restoration. Providing access to a legal insurance plan that covers myriad legal situations can reduce both employees’ financial burden and stress levels.

• Plan ahead and be better prepared.

Tapping into the same benefit suite can help employees prepare in advance of a crisis. For example, financial counselors can provide strategies for building an emergency fund to cover 3 to 6 months of living expenses. Or, through their legal plan, employees can work with an attorney to prepare or update important legal documents, like a will, living trust, and powers of attorney. Being proactive can help employees be resilient and return more quickly to what matters most – their families, friends, and careers.

Overall, the increasing frequency and severity of natural disasters in the U.S. highlights the urgent need for proactive preparation and robust support systems for employees across the country. Employers play a crucial role in helping their employees navigate the challenges posed by these events. And by fostering a culture of preparedness, offering flexible work arrangements, and providing access to essential resources, like financial wellness, mental health benefits and legal insurance, employers can significantly mitigate the impact of natural disasters on their workforce.

Ultimately, a well-prepared and supported workforce is better equipped to face the uncertainties of natural disasters and emerge stronger. As we continue to witness the alarming rise in costly weather events, it’s important for employers to prioritize disaster preparedness and recovery to safeguard their employees’ well-being and ensure business continuity.

Ann Cosiman is ARAG’s General Counsel and directs the company’s legal, regulatory, compliance, risk management and attorney relations departments. Having started her career as an attorney for nonprofit organizations, Cosimano brings a full understanding of — and deep respect for — members experiencing legal issues. She genuinely cares about improving the lives of others and aligns those values with her role as an executive leader.

www.araglegal.com