2025 Guide: Preparing Your Dealership for Natural Disasters

Hurricanes, floods, wildfires, and severe storms are becoming more frequent and costly. In fact, since 1980, the U.S. has experienced more than 400 weather and climate disasters with damages exceeding $1 billion each — totaling over $2.9 trillion.

For 2025, the National Oceanic and Atmospheric Administration (NOAA) forecasts above-average hurricane activity in the Atlantic, alongside an increase in severe storms. Dealerships must take proactive steps to safeguard their people, property, and inventory.

Here are seven essential measures every dealership should follow to minimize risk and prepare for natural disasters.

1. Develop a Comprehensive Disaster Plan

Your first line of defense is a detailed emergency plan. Outline clear procedures for before, during, and after a disaster. Maintain updated contact information for key staff, emergency services, and response partners. Train your team so everyone knows their responsibilities and can act quickly when needed.

2. Protect and Relocate Your Inventory

Vehicle inventory is one of the most vulnerable assets. Partner with a reliable auto transport company that can quickly relocate vehicles ahead of storms or flooding. If relocation isn’t an option, coordinate with local police and security to monitor your lot for theft or vandalism after the event.

3. Power Down Critical Systems

Shut off utilities such as electricity, gas, and water before disaster strikes. Taking these steps reduces the risk of fire, flooding, or further damage during extreme weather.

4. Backup and Safeguard Data

Losing customer or business data can be catastrophic. Keep multiple copies of your records, stored securely offsite or in the cloud. Cloud solutions not only keep data safe but also provide quick access even if your dealership’s physical location is compromised.

5. Invest in Backup Power

Storms often result in widespread outages. A reliable generator ensures your dealership maintains essential functions — from communications to security systems — until normal operations resume. Backup power is both a financial safeguard and a confidence booster for your staff and customers.

6. Review Your Insurance Coverage

Proper insurance is critical. Ensure you have policies for property damage, flood risk, and business interruption. The right coverage can mean the difference between a manageable recovery and a devastating financial loss.

7. Strengthen Financial Readiness

Even with insurance and relief funds, payouts can take weeks. FEMA, for instance, may take 20 days or more to complete inspections and release funds. Build a financial buffer so your dealership can handle immediate expenses in the aftermath. Explore resources like the NADA Relief Fund for additional support.

Final Thought: Are You Ready?

Natural disasters are unpredictable, but preparation isn’t. By creating and executing a clear disaster-readiness plan, dealerships can reduce losses, recover faster, and protect both their assets and their people.

Don’t wait for the next storm — take action now to secure your business for 2025 and beyond.