As extreme temperatures disrupt factories, farms, transport networks and retail operations, coverage is failing to keep pace with the scale and frequency of climate-related damage.
• Record heat is driving costly interruptions, including reduced productivity, spoiled goods and damage to infrastructure.
• Many commercial policies exclude or limit losses caused by heat, drought and other gradual climate risks, leaving companies exposed.
• Insurers face mounting claims and greater uncertainty as climate change makes historic risk models less reliable.
• Small businesses are particularly vulnerable because they often lack the cash reserves needed to withstand prolonged closures or supply-chain disruptions.
• Governments and insurers are under pressure to expand coverage, improve early-warning systems and invest in heat-resilient infrastructure.
The growing protection gap is forcing companies to reconsider where they operate, how they manage workers during extreme weather and whether insurance remains affordable. Without broader risk-sharing measures, Europe’s increasingly frequent heatwaves could turn from seasonal emergencies into a persistent drag on economic growth.