Winter can be a challenging season for businesses, with unique risks that increase the likelihood of insurance claims. From property damage to liability issues, winter weather introduces potential hazards that business owners need to prepare for. Understanding the most common winter-related claims and how to mitigate them can help businesses protect themselves and minimise financial impact.
Here’s a look at some of the top winter-related business insurance claims and practical tips to reduce these risks.
1) Property Damage from Snow and Ice
Heavy snowfall and ice accumulation can lead to structural issues, especially on rooftops. The weight of snow and ice can cause roof collapses, damage gutters and create ice dams, which can lead to leaks and water damage. Some types of Business Insurance will typically cover you financially in the case of these incidents, but they can be costly and disruptive for businesses regardless.
Prevention Tips:
- Schedule Routine Inspections: Check the roof, gutters, and drainage systems before winter to ensure they are in good condition and able to handle extra weight.
- Snow and Ice Removal Plan: Work with a snow removal service or ensure staff are trained to clear snow and ice from rooftops and around the building safely. Installing snow guards can also prevent dangerous snow slides from rooftops.
2) Burst Pipes Due to Freezing Temperatures
When temperatures drop, unprotected pipes are at risk of freezing and bursting, leading to significant water damage and costly repairs. This type of damage can interrupt business operations and cause financial losses as a result. Some Business Insurance can cover you for this too, but it’s important to check the fine print and make sure that you are taking every preventative measure and adhering to regular maintenance.
Prevention Tips:
- Insulate Pipes: Make sure all exposed pipes are well-insulated, especially in basements, attics, or exterior walls where temperatures are likely to be colder.
- Maintain a Minimum Temperature: Where possible, keep the heat on in your building, even when it’s unoccupied, to prevent pipes from freezing.
3) Slip-and-Fall Accidents
Snowy and icy conditions increase the likelihood of slip-and-fall accidents on business premises. Your customers will come and go throughout the day, or other members of the public can pass by or through your property and if the snow, ice or slippery floors are left without being cleared or dried, this can lead to injury and liability claims. Public Liability Insurance can help to protect you against these financial claims, but it’s always best to take steps to prevent slips and falls.
Prevention Tips:
- Prioritise Snow Removal and Salting: Clear walkways, parking lots, and entryways of snow and ice regularly, and apply salt or sand to improve traction.
- Place Warning Signs: Use “Caution: Wet Floor” signs or “Slippery Surface” warnings near entrances where melting snow and ice can create slippery conditions indoors and keep on top of clearing or drying collecting water regularly.
4) Accidents Involving Company Vehicles
Winter driving conditions can be hazardous, increasing the risk of accidents for businesses with fleets or company vehicles. Snow, ice, and poor visibility all contribute to a higher likelihood of collisions, which can lead to expensive claims and even liability for third-party damages.
How to Reduce Accidents:
- Provide Winter Driving Training: Train employees on safe driving techniques for winter conditions and encourage them to drive cautiously.
- Equip Vehicles for Winter: Install snow tyres on company vehicles, ensure windshield wipers and lights are in good condition, and keep emergency supplies on hand in case of a breakdown.
5) Power Outages and Business Interruption
Winter storms can cause power outages that may disrupt business operations, leading to lost income and additional costs. This is especially challenging for businesses reliant on constant power, like restaurants, retail stores, or manufacturing facilities. Business Interruption Insurance can help support you during these times, ensuring that the necessary costs can be paid.
What You Can Do:
- Invest in a Backup Generator: Having a reliable generator can keep essential systems running during a power outage, minimising operational disruptions.
- Review Business Interruption Insurance: Business interruption insurance can cover lost income and operating expenses during temporary closures caused by power outages, so make sure your policy includes coverage for weather-related disruptions.
6) Fire Hazards from Heating Systems
As businesses ramp up heating during winter, there’s an increased risk of fires from heating systems, space heaters and electrical overloads. Heating equipment is one of the leading causes of commercial fires in winter, particularly if it hasn’t been maintained properly. As a business, taking the time and investment throughout the year to ensure your heating systems are fully functional by winter can save you financially and from physical losses.
Safety Measures:
- Regularly Service Heating Systems: Schedule an annual inspection and maintenance of heating systems to ensure they are safe and operating efficiently.
- Use Space Heaters Responsibly: If space heaters are used, ensure they are compliant with fire codes, placed away from flammable materials and turned off when unattended.
7) Employee Injury Claims Due to Winter Hazards
For businesses with outdoor operations, such as construction or delivery services, winter poses additional risks of employee injuries. Cold weather can lead to frostbite, slips, falls, or injuries from snow removal equipment, resulting in workers’ compensation claims. Even employees working indoors are at risk of slips and falls on the way into their place of work in the same way as customers.
Risk Reduction Tips:
- Emphasise Safety Training: Train employees on safe practices for working in winter conditions, including proper lifting techniques for snow removal and recognizing signs of cold stress.
- Employer’s Liability Insurance – In the UK, it is a legal requirement to have an Employer’s Liability Insurance policy to protect your employees and your business. Finding the right one for your company is crucial.
Winter-related claims can be costly and disruptive, but proactive measures and the right insurance coverage can help businesses weather the season with minimal impact. Reviewing your insurance policies to ensure they cover common winter risks is essential. By preparing your property, vehicles, and staff, you can mitigate the most common winter risks and focus on keeping your business running smoothly throughout the colder months.