Wildfires Can Disrupt Employees Long After the Smoke Clears

When a wildfire is contained and businesses reopen, there's often a sense that the worst is behind us. But for employees directly affected by the disaster, returning to work doesn't necessarily mean returning to normal life.

Housing instability, unexpected expenses and family responsibilities can continue for months or even years. And while employees may be back on the job, the challenges of recovery often follow them into the workplace.

The 2025 Eaton and Palisades fires in Los Angeles illustrate how the effects of a natural disaster can extend well beyond the immediate crisis. For employers, they also highlight an important consideration: how to support employees through prolonged recovery and help build financial resilience.

A disaster can create a significant workplace disruption

An employee whose home was damaged or destroyed may suddenly have what amounts to a second job. There are insurance adjusters to call. Contractors to meet. Forms to complete. Temporary housing to secure. Schools and childcare arrangements to reconsider. Damaged belongings to replace.

Some of those responsibilities happen during business hours. Others simply consume the time, attention and energy employees would normally have available for work and family.

One employee may need several afternoons away from work to meet with contractors. Another may temporarily live much farther from the office. Someone else may be trying to work remotely from a hotel or relative's house while searching for permanent housing. The emergency may be over, but the disruption isn't.

Los Angeles shows just how long that disruption can last

The January 2025 fires destroyed thousands of structures and displaced residents throughout the Los Angeles area. As of July 2026, more than 41,000 insurance claims had been filed related to the fires, with approximately $22.4 billion paid by insurers. More than a year and a half after the fires, rebuilding continues.

For employers, the significance isn't simply the number of homes lost or insurance claims filed. It's the number of people behind those statistics who may still be managing the consequences while also going to work every day.

In a large-scale disaster, this isn't necessarily an issue affecting one or two employees. An organization can have dozens of employees simultaneously dealing with displacement, property damage, financial pressure or family members affected by the same event. That can turn a personal disaster into a workforce issue.

Financial disruption can amplify the problem

One of the most significant challenges after a disaster is the number of expenses that can arrive at the same time. There can also be a timing problem: money may be needed now, while insurance claims and other forms of assistance take time. For employees already living with limited emergency savings, that gap can quickly become financial stress.

Employees worried about paying for temporary housing or covering an insurance deductible may have a harder time concentrating. They may need to make personal calls during work hours, take unexpected time away or adjust their schedules.

That creates an important connection for employers. Helping employees become more financially resilient can also help organizations become more resilient.

Disaster preparedness can be part of financial wellness

Employers have expanded the idea of employee financial wellness considerably in recent years. Retirement benefits remain important, but financial wellness programs may also address emergency savings, budgeting, debt, unexpected medical expenses and other financial pressures that affect employees' day-to-day lives.

Supplemental disaster insurance is one option employers can consider. Unlike traditional property insurance, which focuses primarily on repairing or replacing covered property, supplemental disaster insurance can provide a predetermined cash benefit after an approved claim involving a qualifying natural disaster.

That cash can give an employee flexibility to address the needs that are most urgent for their particular situation. That ranges from a deductible or temporary housing to transportation, meals or replacing essential belongings. It's not a replacement for homeowners or renters insurance. It's another potential layer of financial protection.

Preparing for the impact beyond the disaster

While the Los Angeles wildfires provide a powerful example, the lessons extend far beyond California. Hurricanes, tornadoes and other natural disasters can leave employees facing similar challenges, from displacement and financial strain to prolonged disruptions in their daily lives.

For employers, the takeaway is clear. Disaster preparedness shouldn't end with emergency response and business continuity planning. It should also consider the financial challenges employees may face in the weeks, months and even years that follow.

By incorporating disaster preparedness into a broader financial wellness strategy, employers can help employees better navigate unexpected expenses, reduce financial uncertainty and focus on rebuilding their lives.