Sustainability
Facing the Storm: How UK Businesses Can Prepare for Climate Risk
- Admin, Ratcliffes
- 8 May, 2025
In 2024 alone, UK insurers paid out a record-breaking £585 million for weather-related damages, driven by a surge in floods, storms, and extreme heat (The Guardian). This staggering figure reflects not just a turbulent year, but a growing reality: climate change is no longer a distant threat. It is here, it is disrupting business, and it is costing companies dearly. for weather-related damages, driven by a surge in floods, storms, and extreme heat. This staggering figure, reported by The Guardian, reflects not just a turbulent year, but a growing reality: climate change is no longer a distant threat. It is here, it is disrupting business, and it is costing companies dearly.
Why Climate Resilience Matters Now
A recent Financial Times article warns that the UK is inadequately prepared for the impacts of extreme weather. Businesses cannot afford to rely solely on government infrastructure or long-term public adaptation plans. The risks are too immediate and too specific to individual operations, assets, and supply chains.
From disrupted logistics to power outages, damaged property to interrupted services, climate-driven events pose both direct and knock-on threats. For SMEs, which make up over 99% of UK businesses, a single extreme weather event could be enough to threaten survival.
What the Data Tells Us
According to the Met Office, the UK is projected to see:
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Wetter winters with increased flooding risk
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Hotter, drier summers leading to drought and overheating
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More frequent and intense storms
UK Climate Projections (UKCP) suggest that by 2080, winter rainfall could rise by 35% while summer rainfall could fall by 47% in some areas., winter rainfall could rise by 35% while summer rainfall could fall by 47% in some areas. These aren’t abstract statistics — they directly affect insurance premiums, risk assessments, and operational planning.
Real-World Impact: The Insurance Landscape
The link between climate change and insurance cost is direct. As claim volumes rise, insurers are reassessing risk and adjusting pricing. Businesses in flood-prone or coastal areas may see premiums spike or coverage options shrink.
This is especially true for commercial property, fleet, and business interruption cover. Companies that fail to plan for climate risk may find themselves underinsured or uninsurable.
Practical Steps to Protect and Future-Proof Your Business
Taking action now not only protects operations but can reduce insurance costs over time. Here are steps UK businesses can take:
1. Assess Local Climate Risks
Use publicly available tools from the Met Office and UKCP to evaluate your region’s risk profile. Overlay this with your site locations, supply chains, and customer base to understand where you're most vulnerable. Consider professional risk mapping if your operations are complex.
2. Review and Update Insurance Cover
Work with a specialist broker (like Ratcliffes) to ensure you’re covered for emerging risks like flood, storm damage, and business interruption. Schedule regular policy reviews to ensure your coverage keeps pace with changing exposures, particularly if you’ve made property upgrades or opened new sites.
3. Harden Critical Infrastructure
Protect key assets with defences like flood barriers, raised electrical systems, and heat-resistant infrastructure where feasible. In less flood-prone areas, low-cost options such as improved insulation, passive cooling, or relocating equipment to higher levels can still offer protection. Even industries with limited resources, like farming or small retail, can benefit from simple solutions like securing outdoor equipment or using mobile backup power. Documenting any resilience steps may also help with insurance and grant funding opportunities.
4. Build Supply Chain Redundancy
Identify single points of failure in your supply chain. Vet suppliers not only for reliability and cost but also for their climate risk exposure, as highlighted in Everstream Analytics’ climate resilience guidance. Establish backup suppliers in lower-risk regions and diversify transportation options. Maintain inventory buffers for critical materials.
5. Train Staff for Emergencies
Develop clear protocols for different weather scenarios, including evacuation plans, remote work contingencies, and emergency communication chains. Run seasonal drills and ensure all staff know where to access safety equipment and insurance documentation.
6. Monitor and Adapt
Set up a climate watch routine — subscribe to Met Office alerts, monitor local flood warnings, and track seasonal risks. If you're a larger organisation, consider designating a climate resilience lead or team to keep plans updated after major weather events. Smaller businesses can still benefit by using simple checklists, assigning responsibilities informally, or setting reminders to review plans at least once a year.
7. Support Sustainability and Reduce Risk
SMEs can play a part in long-term climate risk reduction by adopting practical sustainability measures — like cutting energy use, reducing waste, or switching to greener suppliers. These actions not only lower emissions but may also reduce local climate risks over time. Even modest steps signal responsibility and may help with insurance premiums, tax reduction or incentive as businesses align with net zero goals. Sustainability credentials are also increasingly valued by supply chains and customers.
The Role of Insurance in Climate Resilience
Insurance can’t stop climate change, but it can provide a vital safety net. At Ratcliffes Insurance Brokers, we help businesses prepare, respond, and recover from climate-driven events with tailored policies and risk mitigation advice.
As climate volatility increases, having the right cover — and demonstrating proactive resilience planning — will become a competitive advantage.
Final Thought
Climate change is no longer tomorrow’s problem. The storms are already here. By understanding your exposure, strengthening your defences, and reviewing your insurance strategy, your business can face the storm — and weather it.
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