Heat can shut a business down. Most policies won't pay

A Reuters analysis looked at what extreme heat is doing to European businesses and found the losses land almost entirely on owners. Moody's estimates last summer's heatwaves there cost roughly 43 billion euros in lost economic output while producing only about 500 million euros in insured payouts. Cafes and shops lost weeks of trade with no damage to claim. Some insurers are pitching parametric policies that pay on a measured trigger, such as days above a set temperature, instead of on physical damage.

The gap is not a European quirk. Standard business interruption coverage in Florida and Texas is tied to direct physical loss, so a slow week from extreme heat, a utility failure down the street, or a road closure usually pays nothing. Coverage for some of that exists, but it comes as endorsements you have to ask for: utility service interruption, civil authority, and dependent property or contingent business interruption. If your revenue depends on foot traffic or on one supplier, read what your policy actually triggers on before hurricane season tests it.

An independent agent can walk your business interruption wording line by line, price the endorsements that fit how you actually earn money, and re-shop the policy if the answer is no coverage.