Extreme Heat Is Becoming More Costly but Insurance Can Be Part of the Solution

Extreme Heat Is Becoming More Costly but Insurance Can Be Part of the Solution

By Gaurav Vasisht | September 27, 2025

Each summer since 2015 has been the hottest on record. As new peaks are reached, workers in both indoor and outdoor jobs-from farm laborers and mail carriers to factory workers and warehouse employees-suffer the health consequences.

While summer is coming to an end, the dangers of extreme heat should not be ignored or forgotten as temperatures will only continue to intensify.

According to scientists, extreme heat poses the greatest health threat to worker health and safety-more than floods, tornadoes, and hurricanes combined. Hot temperatures can lead to heat exhaustion, exacerbate respiratory and cardiovascular conditions such as asthma, kidney disease, or heart disease, and even impair cognitive and motor functions, raising the risk of injuries and death.

Workers are even more vulnerable in upcoming summers as federal heat standards requiring employers have a plan in place to prevent heat injuries are being rolled back.

A recent analysis of 95,000 workers' compensation claims by the New York State Insurance Fund, a public purpose workers' compensation insurer, found that work-related accidents are on average 45% percent more likely and 20% percent more severe on days with temperatures exceeding 80 degrees. Yet multiple surveys show that less than 20% of businesses are prepared to protect their workers from the harmful climate risks. The problem is particularly acute for small businesses with limited resources.
This summer, under Governor Hochul's leadership, NYSIF launched a pilot program to help small businesses better protect their workers from extreme heat. Under the initiative, small businesses with 10 or fewer employees can receive a credit of up to $1,000 to buy any protective equipment such as cooling units, ventilated hard hats, cooling vests, tents and other protective gear. The credit, if utilized, can reduce the growth in frequency and severity of heat related claims over time, raising the morale and retention of employees at businesses that proactively protect their workers.

Extreme heat is unfortunately no longer uncommon and protecting workers from its dangers is no longer an optional expense. The cost of inaction will only continue to rise each year, but preparation can start now.

Gaurav Vasisht is the Executive Director and Chief Executive Officer of NYSIF.

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