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March 3, 2014
Media Contact
Steve Zenofsky, APR, Fellow PRSA
Phone: (401) 415-1945
E-mail: steven.zenofsky@fmglobal.com
Severe Winter Weather Affecting the Bottom Line of Many
U.S. Businesses, Says FM Global Study
JOHNSTON, R.I., USA—This year’s severe winter weather conditions have hamstrung business
operations for many companies across the country, according to a new poll of America’s
workforce, commissioned by FM Global, one of the world’s largest business property insurers.
Likewise, the risk of more severe weather means a continued threat to U.S. businesses’ bottom
lines.
The research finds nearly three-quarters (71 percent) of full-time employees in the United States
say this winter is the worst they have experienced in the last five years. And, more than one in
four say their company has been hit financially as a result of the winter weather and doesn’t have
an emergency plan to keep business going during severe weather events.
Companies’ greatest concerns when facing such storms are property damage, business continuity
and loss of profits/revenue, say a third of Americans polled.
However, the research suggests the risk of ongoing winter storms has caught management’s
attention. One in three workers report their company has had to change the way it does business
because of storm-related financial losses.
“These findings speak to the need for businesses to avoid complacency when it comes to winter
weather and have business continuity plans to address the risk,” said Jon Hall, executive vice
president, FM Global. “The research shows many companies are being blindsided by the winter
weather. Such losses, both financially and to physical property, present a constant threat that can
affect an organization’s competitiveness and speak to the need for businesses to remain resilient,
no matter what winter throws at them.”
FM Global recommends the following best practices for businesses to help prevent damage in
freezing conditions:
1. Plan as if freeze-ups are a certainty, even if your business operations are located in a
warm climate where severe temperature drops are uncommon.
2. Arrange for key facility staff to be available during expected cold spells to monitor
weather conditions and patrol buildings in search of cold spots, structural damage, large
leaks or sprinkler piping breaks.
3. Have procedures for maintaining adequate heat, especially if a shutdown of operations
becomes necessary.
For more information on preparing for freezing weather, visit www.fmglobal.com/nathaz.
About the Research
FM Global fielded the study in mid-February 2014 about the impact of severe winter weather on
U.S. businesses, using the research services of Toluna. Full-time employees, age 18 and older,
were screened from a nationally representative sample. The survey had a margin of error of
plus/minus 4.3 percentage points at a 95 percent confidence level, and was completed by 521
participants.
About FM Global
Established in 1835, FM Global is a US $5.5 billion mutual insurance company whose capital,
scientific research capability and engineering expertise are solely dedicated to property risk
management. Its client-owners, who share the belief that the majority of property loss is
preventable, represent many of the world’s largest organizations, including one of every three
FORTUNE 1000 companies. They work with FM Global to better understand the hazards that
can impact their business continuity in order to make cost-effective risk management decisions
combining property loss prevention with insurance protection. FM Global is rated A+ (Superior)
by A.M. Best and AA (Very Strong) by Fitch.
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