As the world becomes warmer, tornado behaviour is changing, making it critical for commercial property owners to understand and mitigate this evolving risk. The USA experiences approximately 1,200 tornadoes annually. These violent windstorms are measured using the Enhanced Fujita (EF) scale, which ranges from EF0 (weakest) to EF5 (strongest), based on the damage they cause.
Unprecedented shift: tornado patterns
Historically, tornadoes were most commonly associated with the Great Plains states such as Texas and Oklahoma. However, recent data indicates a significant shift. More than 1,100 tornadoes were reported through May 2024, nearly double the 30-year average for that period. This surge ranks just behind 2011, a year marked by devastating tornado outbreaks in the southeastern US*.
Additionally, in May 2024, at least one tornado occurred somewhere in the country almost every day. States like Georgia and Illinois, which are not traditionally tornado hotspots, have seen repeated hits. Other states, including Tennessee, Arkansas, Minnesota, and Iowa, have also experienced an uptick in tornado activity. This wider regional spread has a higher population density, thereby increasing the risk and potential damage.
The unpredictability of tornadoes this year has been partly driven by an active jet stream, influenced by the diminishing El Niño weather pattern. The jet stream, a band of strong upper-level winds that flows between warm air to its south and cool air to its north, plays a crucial role in how and where weather systems evolve. This year, an abundance of wind shear and atmospheric instability has fuelled a hyperactive tornado season.
Mitigating tornado risk
While it is impossible to completely remove the risk posed by a tornado, businesses can take several affordable measures to minimise the risk to facilities, employees, and operations. Many of these steps also offer protection against other high wind and thunderstorm-related weather risks.
Begin by assessing the likelihood of a tornado striking your business. The Federal Emergency Management Agency (FEMA) provides maps to help identify areas with the highest risk. Understanding your specific tornado risks is essential for implementing the appropriate protective measures.
Protecting employees
- Emergency planning: Develop and disseminate an emergency plan detailing what managers and employees should do if a tornado threatens. Regularly practise these procedures through drills.
- Weather monitoring: Purchase a weather radio capable of tuning into the local frequency. Assign someone to track local radar and warning information regularly, especially if a tornado warning is issued.
- Structural safety: Keep exterior doors and windows closed to minimise rain and flying debris. Closing interior doors can compartmentalise the building, providing additional barriers between employees and the storm.
- Safe areas: Identify the safest areas for shelter within your building, such as basements or small interior rooms on the first floor. Avoid rooms with outside walls or large unsupported ceilings. If your building lacks adequate protection, consider hardening a section or building a safe room according to FEMA and International Code Council (ICC) guidelines.
- Portable shelters: Ensure provisions are in place to protect employees in portable outbuildings and those operating vehicles during a tornado.
Protecting property
Wind-resistant construction is both cost-effective and crucial for minimising structural damage from tornadoes and other high-wind events:
- New construction: When building in tornado-prone areas, work with architects or contractors to incorporate wind mitigation techniques and high-wind-rated products, including safe areas for personnel. It's more effective and less costly to integrate these measures during design and construction.
- Retrofitting existing structures: For buildings not originally built to wind mitigation standards, consider retrofitting, especially during remodelling. This might include building a safe room, reinforcing entry and overhead doors, bracing roofs, and adding recommended fasteners, ties, and reinforcements.
Insuring against tornadoes
Currently, 19 US states require some form of windstorm insurance. In high-risk regions, policies may include separate wind/hail deductibles. For property owners unable to secure coverage in the private market, state-run insurers of last resort are an option. However, 2023 saw an unprecedented volume of high-dollar severe convective storm loss events, leading to an influx of policies for these state-run insurers. This raises sustainability concerns, potentially necessitating federal intervention to guarantee financial protection for states.
With increasing underwriter requirements and more restrictive cover for Property owners, there are other options for sourcing suitable insurance where locally this may not be possible. For commercial buyers, the London market remains an option. Insurers may also offer lower premiums if property owners can demonstrate improvements to their buildings' structural integrity.
How can Gallagher help
The increasing risk of extreme weather events like tornadoes is a reality that will not diminish. Therefore, risk mitigation is essential to soften the impact. Equally important is working with a global insurance broker like Gallagher. We can help clients source the most competitive and comprehensive insurance solutions, even in the most challenging circumstances. By staying informed and prepared, businesses can better navigate the evolving tornado risk landscape.
