…When businesses are forced to shut down operations due to excessive heat, it can leave them in a tight spot financially, particularly smaller businesses. Jonathan Bydlak, director of the R Street Institute’s Governance Program, told FOX Business that insurance policies can be helpful for businesses dealing with the heat in some cases.

“Various lines of credit are available to small businesses dealing with the heat, but these aren’t always sufficient for extended business closures,” Bydlak explained. “Some commercial property insurance plans will cover harms caused by extreme weather events, though not always.” 

“Increasingly, though, insurance markets have been stepping up to assist businesses facing hardship,” he added. “Developments like heat stroke insurance policies and other income protection plans are becoming more common, and some of these are very specialized and sophisticated. Dairy farmers, for example, can buy plans that reimburse them when it’s too hot for their cows to produce milk…”