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The cost of a tornado: The financial impact on your business



Tornadoes can have a severe financial impact on your business, causing property damage and lost revenue.

Key Highlights

Property damage and repair costs are an immediate financial impacts of a tornado on your business

Lost revenue and business interruptions can cause significant disruptions to your operations

Insurance, rebuilding, and relocation costs can be costly and time-consuming


Tornadoes can have a devastating impact on businesses, both big and small. The financial costs of a tornado can be staggering. From property damage to lost revenue, the impact of a tornado can be felt for years after the storm has passed. AccuWeather SkyGuard® Warnings can help your business better protect your people, property, and assets when there is a tornado threat in the area. 


Property Damage and Repair Costs

One of the most immediate costs of a tornado is property damage. Tornadoes can destroy buildings, equipment, and inventory, leaving businesses with a massive bill for repairs and replacement. Even if the building still stands, it may require extensive repairs to make it safe for employees and customers to enter.

Lost Revenue and Business Interruption

In addition to the physical damage, tornadoes can cause significant disruptions to business operations. Power outages, road closures, and other disruptions can prevent businesses from opening their doors and serving customers. After the storm has passed, companies may see a decrease in demand because of the economic impact on the community. 

AccuWeather For Business can also help you determine if and when your business should shut down and have employees move to the shelter. AccuWeather’s Reviewed Tornado Notifications will inform you if a tornado threatens your assets, even if your area is under a government warning. These notifications can help prevent false alarms and unnecessary shutdowns.

Increased Insurance Costs

Businesses impacted by tornadoes may need to file insurance claims to cover the cost of repairs and lost revenue. Insurance policies can be complex and take time to receive payouts. Some insurance providers give discounts on premiums to companies that obtain weather risk mitigation services like those offered by AccuWeather For Business. You should check with your insurance carrier to see if your business qualifies.

Rebuilding and Relocating Costs

In some cases, the damage from a tornado may be so severe that businesses need to rebuild or relocate entirely. Relocation can be expensive and time-consuming because companies may need to secure funding, find a new location, and rebuild from scratch.

When tornadoes are in the forecast, AccuWeather For Business provides 16 minutes of advance notice compared to an average of eight minutes from other sources.

 >>READ MORE: When minutes matter: how to plan for and respond to a SkyGuard Tornado Warning

By using AccuWeather SkyGuard Warnings backed by Superior Accuracy™, your business will get site-specific alerts and warnings well before severe weather hits, giving you more time to prepare. Plus, get access to a team of expert severe weather meteorologists watching out for your business 24 hours a day, 365 days a year.

Want to learn more about how your organization can be better prepared for a tornado? Demo SkyGuard today and protect your business, employees, and assets.


Protect your business employees, and assets.

Demo SkyGuard today.