The recent spate of natural disasters that devastated parts of North America included a violent variety of events. There were three major hurricanes—Harvey, Irma, and Maria—wildfires in California, an earthquake in Mexico, and tornadoes in Oklahoma.

One thing these calamities have in common: They inflicted billions of dollars in property damage and adversely affected many small businesses. History portends that many of those operations won’t ever completely recover.

Almost 40 percent of small businesses don’t reopen after a disaster because the cost of recovery is so high, according to the Federal Emergency Management Agency (FEMA). One of the major reasons is that the businesses didn’t have sufficient insurance.

As I explain in my book, The Business Owner’s Definitive Guide to Captive Insurance Companies (AuthorHouse, 2011), many small business owners will face additional losses due to these disasters, some of which may not be as obvious as flood or wind-damage claims.

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