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For Immediate Release��

Loretta Worters
New York Press Office
917-208-8842
lorettaw@iii.org��

MALVERN, Pa., April 29, 2025 – Lightning poses significant fire risks to small and medium-sized enterprises (SMEs), causing billions of dollars in damage annually, according to the (Triple-I) and the (LPI).

“Recovery costs from lightning can be devastating to a business,” said Tim Harger, executive director, LPI. “Not only can it cause damage to structures and electrical systems, but it can result in business interruption and lost income. Every SME should assess their risk and take action before a strike happens. It’s the first step to protecting their operations — and their future.”

National Small Business Week (May 4-10) highlights the importance of obtaining professionally designed, installed, inspected, and certified lightning protection and grounding systems, which can help mitigate this risk, as well as the right type and amount of insurance to protect these businesses.

According to the Small Business Administration (SBA), 40% of small businesses do not reopen following a disaster, another 25% fail within a year, and more than 90% fail within two years.

“Larger commercial businesses have been ahead of the curve in terms of predicting and preventing risk,” said Sean Kevelighan, Triple-I CEO. “They often have an onsite risk manager to identify, assess and manage potential risks that could negatively impact the business.”

“While larger commercial businesses tend to be more informed on the benefits of insurance as well as predicting and preventing��risk, oftentimes smaller and mid-sized businesses simply do not have the resources, and ironically, they are most at risk when disaster strikes,” Kevelighan added.��“As much as purchasing insurance and taking steps to mitigate risk may seem like an added cost when budgeting is tight, the reality is they will recover faster and have a greater chance of staying in business.”

Protecting a small business from lightning requires five strategies:

������ 1. Properly designed, installed and certified lightning protection system – These systems provide a specified path to harness and safely ground the super-charged current of a lightning bolt. Because every building is unique, the system should factor in risks such as location, frequency of thunderstorms, soil composition and building occupancy.

�������� 2. Surge protection – Selection and installation of appropriate surge protection devices can help prevent electrical and electronic equipment from strikes and surges that can enter a building through the electrical system, telephone, data or other outside wires.

�������� 3. Business property insurance – Pays to repair or replace damaged physical assets such as the building, office equipment, furniture, fixtures,��inventory and other items a business depends on to support daily operations.��

�������� 4. Business income and extra expense insurance – Provides��coverage when your business is forced to close temporarily due to a covered loss, such as a fire from a lightning strike. It helps replace your income and��expenses such as rent,��payroll, relocation costs and advertising fees if you need to set up shop at a temporary location, are leasing equipment��and other financial responsibilities while your property is being repaired or replaced.

�������� 5. Utility services endorsement to business interruption and/or extra expense coverage – Added protection for disruption of basic utility services to a business’s premises such as electric, gas or water provided by public or private utility companies.

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About the �Ӱ�ԭ�� Information Institute (Triple-I)

Since 1960, the (Triple-I) has been the trusted voice of risk and insurance, delivering unique, data-driven insights to educate, elevate and connect consumers, industry professionals, policymakers and the media. An affiliate of , Triple-I represents a diverse membership accounting for nearly 50% of all U.S. property/casualty premiums written. Our members include mutual and stock companies, personal and commercial lines, primary insurers and reinsurers – serving regional, national and global markets.

About The Institutes��

are a not-for-profit comprised of diverse affiliates that educate, elevate, and connect people in the essential disciplines of risk management and insurance. Through products and services offered by The Institutes and nearly 20 affiliated business units, people and organizations are empowered to help those in need with a focus on understanding, predicting, and preventing losses to create a more resilient world.

The Institutes is a registered trademark of The Institutes. All rights reserved.

About the Lightning Protection Institute (LPI)

The (LPI) is the national organization that leads the way in establishing the highest standards and guidelines for the design, installation, and inspection of lightning protection systems. Our work includes collaboration with architects, engineers, building enclosure consultants, general contractors, as well as many other construction and facility management individuals.��The LPI is committed to providing individuals, communities, and our members the resources and education that are needed to stay safe from lightning.