“The power was out for days, and we had no cooling. We lost inventory,  time, and trust.” 

— Reported sentiment from multiple Texas cannabis retailers after Hurricane Beryl (July  2024) 

The Problem: Natural Disasters Are Crippling Cannabis Businesses 

In July 2024, Hurricane Beryl made landfall near Matagorda, Texas, as a Category 1 storm.  Over several days, coastal and inland areas were recorded with 10–16 inches of rain, 7-foot  storm surges, and mass power outages that left over 2.7 million homes and businesses in  the dark¹²³. Tragically, at least 44 deaths were attributed to extreme heat and extended  blackouts. 

For cannabis operators, the consequences were severe. Indoor cultivation facilities  lost power, triggering rapid temperature spikes, humidity swings, and widespread  crop failure. Mold outbreaks and compliance issues followed. Outdoor growers faced  flooded fields, soil contamination, and damaged irrigation systems. Retailers saw  product spoilage from failed refrigeration, interrupted logistics, and days, sometimes  weeks, of lost revenue. 

Flash Flood Catastrophe in Texas Hill Country, July 2025 

Over the Fourth of July weekend in 2025, central Texas was struck by one of the deadliest  inland flash floods in decades. Torrential rains—some areas receiving an astonishing up to  20 inches in just a few hours—triggered “life-threatening flash flooding” across Kerr and  Gillespie Counties, including communities like Kerrville, Hunt, Comfort, and neighboring  areas. The Guadalupe River surged dramatically: in Hunt it rose 22 feet within two hours,  reaching heights of nearly 30 feet, while in Kerrville and Comfort water levels also spiked  rapidly. The disaster resulted in a staggering business loss and a devastating death toll  exceeding 130 people, with at least 107 fatalities in Kerr County alone, and 27 lives lost at  Camp Mystic, an all-girls Christian summer camp.

A Northeast Wake-Up Call: July 2025 Flooding in New Jersey 

July 25 also brought mass destruction to the east coast, New Jersey experienced three  separate flash flooding events that left businesses scrambling across counties. In Somerset  and Union counties, sudden downpours overwhelmed storm drains, damaged storefronts,  and prompted emergency shelter-in-place orders⁶. 

Nichelle Santos, CEO, CannaCoverage Insurance  saw the devastation  first hand, as a resident of Somerset County. Santos stated, “In towns like Plainfield, Warren, and Scotch  Plains, road closures and impassable intersections left employees stranded and operations  halted. Nearby, cannabis retailers and small grows weren’t spared: reports of water  damage, mold remediation, and delayed shipments mirrored post-hurricane conditions  hundreds of miles south.  From flash floods in North Plainfield to sewage overflows in  Watchung, the message was clear, extreme weather events are now a monthly concern, not  an annual surprise.” 

Shauna Blackburn, Executive Vice President of Underwriting and Development, The Cannabis Insurance Company, stated, the recent tragedies, each of historic proportion,  reveal stark vulnerabilities: both to natural disasters and the fragile regulatory climate  around hemp and cannabis. Businesses in these sectors need tailored support, ranging from  risk mitigation disaster preparedness, insurance services, and regulatory relief, to  sustainably recover from this crisis.” 

The Impact on Cannabis Operations 

1. Production Losses 

Indoor grow rooms depend on consistent environmental control. Just a few hours  without electricity can undo months of progress. During Beryl, many facilities  reported total crop loss. In New Jersey’s July 2025 flooding, operators with ground level HVAC systems saw mold take hold in less than 48 hours. 

2. Financial Fallout 

Cannabis operators don’t qualify for FEMA or SBA recovery programs. And  insurance? Many policies exclude losses tied to flood, mold, or spoilage. Whether  you’re in Texas or New Jersey, unexpected downtime can translate into five- or six figure losses. 

3. Employee Safety & Stability 

From flooded entryways to collapsed ceilings, the risks extend beyond plants.  Several NJ businesses were forced to close for repairs, leaving hourly staff without  work or wages. And even when facilities were operational, hazardous air quality  from standing water or compromised ventilation slowed reopening timelines.

A Unique Vulnerability 

The cannabis industry faces challenges that amplify disaster risk: 

• No Federal Relief: Cannabis remains federally illegal, cutting off FEMA support and  most emergency grants. 
• Strict Compliance Requirements: Even during emergencies, cannabis operators  must maintain precise seed-to-sale tracking. 
• Limited Insurance Options: Business interruption insurance is notoriously limited. • Complex, Perishable Inventory: Cannabis isn’t shelf-stable. 

“Cannabis businesses are experiencing the same climate threats as others,  but with fewer tools to recover.”⁴ MJ Biz Daily 

And these threats are intensifying. According to NOAA’s 2025 Atlantic Hurricane Outlook,  forecasters expect an above-average season with 13–19 named storms, a clear warning for  coastal and inland operators alike⁵. 

The Solution: Proactive, Cannabis-Specific Continuity Planning 

Waiting for relief that never comes is not a strategy. At Canna Shield Compliance, we  specialize in designing Business Continuity Plans (BCPs) tailored to the unique needs of  cannabis operators. Our framework ensures you can weather the next storm and every  disruption beyond it. 

1. Risk Assessment & Infrastructure Vulnerability 

We map your facility’s exposure to floods, wind damage, and power loss. By identifying  critical systems, we prioritize upgrades and backup solutions. 

2. Operational Redundancy Plans 

From backup generators and battery systems to alternate cultivation sites, we establish fail safe processes that keep your grow rooms and dispensaries running when the grid goes  down. 

3. Employee & Safety Protocols 

Your team is your most valuable asset. We craft clear evacuation procedures, on-site shelter  plans, and communication trees to protect staff and maintain compliance under duress.

4. Insurance & Compliance Alignment 

Cannabis Insurance falls under Excess and Surplus Lines, otherwise known as the “high  risk” category.  Navigating insurance exclusions and state regulations is complex. We review  the insured’s policies, recommend carriers who specialize in cannabis, and align your BCP  with regulatory requirements to avoid costly lapses. 

5. Resilient Supply Chain Models 

Disruptions rarely happen in isolation. We help you develop and expand alternative  supplier networks both in state for cannabis; and for hemp in and out of state, to ensure you  can source inputs and distribute products, no matter the local conditions. 

Don’t Let the Next Storm Destroy What You’ve Built

Natural disasters aren’t hypothetical; they’re happening now, and their frequency is rising.  The difference between recovery and ruin is preparedness. Whether you’re a microbusiness  or a multi-state operator, your cannabis operation demands a strong continuity plan. 

Protect your license. Protect your business.  Book your free disaster risk assessment today.

Schedule Online: www.cannashield.net
Call: 732-433-0557
Email: info@cannashield.net 

References 

¹ CNN – “Hurricane Beryl Damage in Texas,” July 9, 2024 

² Texas Tribune – “Small Businesses After Hurricane Beryl,” July 11, 2024 ³ National Weather Service – “Beryl Recap,” July 2024 

³ National Weather Service – “Beryl Recap,” July 2024

⁴ MJBizDaily – “High Winds, Flooding Shutter Marijuana Operations,” July 2024

⁵ NOAA – “2025 Atlantic Hurricane Season Outlook,” May 2025 

⁶ MSN – “NJ County Issues Shelter-in-Place After Dangerous Flash Flooding,” July 2025 

⁷ NJ101.5 – “Somerset, Union County Businesses Begin Recovery After July Flooding,”  July 2025