How much financial distress are businesses facing following climate disasters, and how are they financing their losses? Ben Collier finds that firms that experienced more flooding from Hurricane Harvey were more likely to be late on their credit payments.

Collier also finds that it is common for businesses to be uninsured and lack access to credit, limiting their avenues to financial recovery. Many owners covered their firm’s losses with personal finances rather than taking out loans.

Business owners and policymakers should consider the importance of using insurance and loans as recovery tools so that owners are not left to personally finance their losses.