The 2025 hurricane season is projected to be more active than prior years' seasons. Hence, it is important that companies operating facilities that could be impacted ensure that they have proper disaster preparedness plans in place. While proper disaster preparedness plans will help reduce potential harm caused during a storm, proper contract provisions can help reduce liability to a company both before and after a storm. Most companies' commercial contracts contain force majeure clauses that are intended to provide protection to facilities impacted by natural disasters, such as hurricanes. However, such clauses are generally not construed broadly. Contracts should include clear and direct provisions that excuse lack of performance due to pre-storm shutdown procedures for companies pursuant to internal disaster preparedness plans. Further, contracts should address post-storm concerns arising from slow facility startup and reduced production rates during the restart process to ensure companies are not at risk of breaching production obligations under a contract. Continue reading >