Insurance Information Institute highlights lightning fire risks for small businesses

The Insurance Information Institute announced in a press release that lightning poses significant fire and financial risks to small and medium-sized businesses and recommended mitigation strategies.

According to the Insurance Information Institute (Triple-I), lightning strikes pose a significant but frequently underestimated threat to small and medium-sized enterprises (SMEs), causing billions of dollars in structural and operational losses annually. In coordination with the Lightning Protection Institute (LPI), Triple-I issued this warning during National Small Business Week to raise awareness about the need for preventive measures. The statement emphasized that lightning can lead to not only fires and equipment damage but also prolonged business interruption, with devastating financial consequences.

As reported by Triple-I, nearly 40% of small businesses never reopen after a disaster, and over 90% shut down permanently within two years. These figures, drawn from the U.S. Small Business Administration, demonstrate the importance of pre-disaster risk management. The Insurance Information Institute stresses that many SMEs lack the risk assessment infrastructure that larger firms possess, leaving them particularly exposed to lightning-related hazards.

The Insurance Information Institute and LPI outlined five key strategies to reduce lightning risk: installing certified lightning protection systems, using surge protection devices, maintaining business property insurance, securing business income coverage, and adding utility service endorsements. These measures offer layered protection for physical assets, business continuity, and critical infrastructure. Triple-I emphasized that understanding and adopting these tools can help small businesses recover more quickly and avoid long-term operational disruptions.

The Insurance Information Institute (Triple-I), founded in 1960, delivers objective, data-driven insights to educate the public, industry professionals, and policymakers on insurance and risk-related topics. As an affiliate of The Institutes, Triple-I represents nearly 50% of U.S. property/casualty insurance premiums through its diverse member companies. The organization’s mission is to promote consumer understanding of insurance and foster resilience through research, outreach, and thought leadership.