The recent devastating fires in California, which have killed at least 25 people and caused more than 100,000 to flee their homes in various areas of Los Angeles, serve as a wake-up call for everyone regarding the need for protection in the face of unexpected disasters.
The wildfires that broke out in Los Angeles, California, and forced the evacuation of emblematic areas such as Hollywood, are a wake-up call for everyone, as they reveal our fragility in the face of weather disasters, which are becoming increasingly recurrent. The year 2024 was an example of this, as it was the third year with the most losses for the insurance sector due to weather disasters. Last year, according to a recent study published by ECOseguros, “meteorological catastrophes dominated the loss panorama, accounting for 93% of global damage”.
In Portugal, the fires that affected large areas in the summer of 2024 reinforce the importance of effective protection strategies. Therefore, these events, which cause immediate destruction and paralyze activities, lead to the need for proactive risk management, namely through more comprehensive insurance and with the help of a specialist insurance consultant. So, the main objective is to minimize losses, even in the face of the most unexpected adversities.
This article explores the importance of using specific coverage that, in the event of weather disasters, minimizes risks and leads to greater financial security.
The effects of climate change
Climate change plays a significant role in increasing the frequency and intensity of forest fires. In Portugal, phenomena such as high temperatures, strong winds and low humidity, associated with climate change, create conditions conducive to the rapid spread of fires. The Portuguese Council for Health and the Environment argues, according to information revealed by SIC Notícias, that the climate emergency “must be considered a public health emergency”.
Now, disasters caused by climate change can cause significant property damage, which is generally covered by the basic multi-risk policy – as long as it includes fire protection. However, it is equally crucial to consider business interruption cover to protect business continuity in the face of unforeseen events.
It is relatively easy to identify property damage, but when it directly affects the business sector, it is essential to understand in detail all the rights and compensation to which the company is entitled – hence the importance of business interruption cover.
Risk management in times of climate change
Extreme weather events, intensified by climate change, have been causing devastating impacts in various areas, from property damage to interruptions in essential activities. So, business interruption cover plays a key role in mitigating the financial costs associated with events such as fires, storms or floods. This protection goes beyond the recovery of material damage, ensuring that the economic consequences of an unexpected stop are minimized.
The growing awareness of climate risks has reinforced the importance of adopting preventive and protective solutions. Betting on risk mitigation, through responsible management and the transfer of risks to insurers, is essential to meet the challenges of a constantly changing environment.
At Famasegur, we are more than a protection partner: we are catalysts for solutions that help to meet the challenges imposed by climate change. We support the adoption of specific coverages that offer security and stability, while promoting responsible risk management in line with the needs of the future. We work to ensure that every client, whether private or business, has the right tools to protect what is most important, even in times of uncertainty. Contact us and make your simulation now.
