Businesses have special opportunities and difficulties during the Christmas season that immediately affect their risk management and insurance coverage requirements. Key ways the holidays could affect business insurance coverage, and considerations are shown below.
More Risk of Vandalism and Theft
Businesses sometimes keep more merchandise on hand around holidays to satisfy demand. This rise in products makes companies targets for damage or theft. Reviewing commercial property insurance helps one to make sure it covers the value of extra merchandise as well as any holiday-specific hazards like seasonal decorations or temporary outdoor configurations. Install alarms and video cameras, among other security devices, to assist in reducing these hazards and might possibly help to lessen rates.
Seasonal Workers' Compensation and Employment
Over the holidays, many companies call on seasonal or temporary staff. It's imperative to make sure these staff members have workers' compensation insurance. Employers should find out from their insurers whether further coverage is needed or whether seasonal workers are automatically covered in their current policy. Should an accident happen, misclassifying employees or neglecting policy updates could result in legal and financial problems.
Liability Coverages and Special Events
Holiday celebrations, sales contests, and advertising meetings subject companies to liability concerns. For instance, a general liability or event insurance policy could be required to guard against lawsuits should a vendor contest a contractual duty or a customer get harmed at a holiday event. Companies should assess whether their present policies allow holiday-related operations and take into account getting sponsorships if needed.
Business interruption and Supply Chain Disruptions
The holiday frenzy can tax supply systems, causing delays or disruptions. Should a company depend on prompt delivery to satisfy client expectations, these delays can cause lost income. Although business interruption insurance can assist with financial losses resulting from supply chain problems, it is important to carefully go over the policy terms to be sure coverage covers such events.
More Risk for Deliverable Companies
For companies engaged in delivery or shipping, higher holiday demand might raise hazards like vehicle mishaps or delayed shipments. Commercial motor insurance should be current; extra coverage could be required to manage the seasonal increase in deliveries.
Prepping For the Holidays
Well ahead of the holidays, business owners should aggressively evaluate their insurance plans. Talking with an insurance agent to find possible coverage gaps and investigating extra precautions will help a company stay secure in this high-risk, high-reward season.