We all complain about the weather — too cold, too hot, too much or too little rain, too much snow — but the construction industry feels those swings more than most. Weather affects schedules, materials, budgets and safety. Recent severe-weather trends have added new challenges.
Quick facts
- From 2020–2024, the U.S. averaged 23 billion-dollar natural disasters a year (NOAA).
- In 2024 there were 27 such events; in 2023 there were 28 (NCEI).
- Climate Central reports 2025 as the third-highest year for billion-dollar weather disasters, with 23 events totaling $115 billion in damages.
- Raken estimates U.S. weather-related construction delays cost nearly $4 billion.
Weather on the job site
Strong winds can cause falling or airborne debris and injuries. Heavy rain turns ground to mud or causes standing water. Prolonged dry spells can delay foundation work. Delays that last weeks can push projects out of season.
These conditions are also changing material choices. Owners and designers increasingly specify lighter, stronger and more durable products, and that can raise material costs. At the same time, weather-related delays and labor impacts can increase insurance expenses — and those costs often get passed into project pricing or lead firms to decline work they can’t insure affordably.
Planning steps that can help
Start by identifying exposures.
Look at your individual projects and for your business overall — and sketch out plausible worst-case scenarios. The more you prepare, the clearer your response options will be.
Create a clear emergency action plan.
After you identify exposures, write a step-by-step plan. Include who does what, and what to expect in different situations. If you employ 10 or more people, OSHA requires a written plan.
Involve staff and test the plan.
Field crews often spot practical problems and fixes. Include them in planning to get better solutions and buy-in. Run drills to see how the plan works in practice, then adjust. Regular training keeps roles clear.
Update plans for each project.
No two jobs are the same: different sites, crews, equipment and subcontractors create different risks. Review and revise the plan as conditions change.
How parametric insurance can fit
Parametric insurance pays a pre-agreed amount when a specific event threshold (for example, wind speed or rainfall) is met. It pays based on the event’s magnitude rather than on documented losses, so payments can be quicker and don’t require the same claims-adjustment process. Parametric products are often used alongside traditional insurance to cover gaps or to provide faster cash flow after an event. Payout timing and formulas are agreed up front; verification of the underlying data is required before payment.
Common uses
- Natural disasters: earthquakes, hurricanes, floods, wildfires.
- Extreme weather: unusual temperature, prolonged wet or dry periods.
- Non-damage business interruptions: extended power outages, prolonged site inaccessibility, supply-chain stoppages, and similar disruptions where there may be no physical damage.
Talk with Marsh McLennan Agency.
Parametric insurance is one option to consider when funding the uncertainty from severe events. Combined with a practical, regularly updated emergency plan, it can help you manage immediate cash needs and bridge gaps left by traditional policies. Marsh McLennan Agency can review your exposures and discuss whether parametric coverage makes sense for your projects. Contact us today.
