Many businesses look forward to a summertime boost in customers and the increased revenue that comes with it. But summer also comes with more risks. To help small business owners prepare, we’ve identified seasonal risks to mitigate.
Here are nine common issues that tend to rise alongside summer temperatures, plus tips on how to reduce your exposure to each one.
1. Employee Safety in Summer Weather
Summer heat increases the risk of heat exhaustion and sun damage, especially for outdoor workers, warehouse staff, servers and delivery teams. Protect your employees’ wellness by providing consistent access to water and shade - this goes a long way toward preventing heat exhaustion and dehydration.
You can also protect your business against the risk of related on-the-job injuries by reviewing your workers’ compensation insurance and making sure you have appropriate coverage for seasonal workers.
2. Damaging Summer Storms
Summertime weather conditions can cause severe storms, leading to a higher chance of property damage. Keep an eye on the weather forecast and set up alerts for severe weather so you’re always prepared.
Create a storm readiness plan with a handy checklist to help staff stay focused under pressure. Train your employees on this plan so everyone knows what to do, whether that means taking down outdoor patio umbrellas or battening down the hatches in your warehouse. Finally, review and secure proper commercial property insurance to guard against damage from wind, water and lightning.
3. HVAC Downtime
High temperatures wear down HVAC systems. And any time your AC is down, it puts both your employees and your business at risk. Customers don’t typically enjoy spending time or money in a place that can’t keep them cool, so stay up on system maintenance and consider signing up for a proactive HVAC touch-up plan to avoid potential downtime. In the event of an AC breakdown that temporarily halts operation, business interruption insurance can protect your business by covering expenses while income is reduced.
4. Power Outages
Summer heatwaves put stress on the power grid. Paired with a higher number of severe storms, this stress makes power outages more likely. Protect your employee productivity, temperature-sensitive equipment and inventory, and your overall operations by installing an appropriately sized backup generator. Then, ensure you can cover operational expenses during outages by securing business interruption insurance, also known as business income insurance.
5. Fires
High temperatures paired with dry conditions lead to increased fire risk, especially in drought-prone areas. Reduce your fire risk by clearing your premises of dry vegetation and other debris that could serve as kindling. In the event of a fire, commercial property insurance can help pay for covered damages, and business interruption insurance can help cover operational costs during repairs.
6. Increased Premises Liability
Summer can bring an uptick in foot traffic and the opportunity to expand outdoor seating. While this can boost business, it can also increase the likelihood of on-site accidents. Train employees to be aware of areas that can get slippery and remind them to regularly scan for hazards that may cause injury. It’s also wise to check your general liability coverage to ensure it can protect your business from the costs associated with customer injuries.
7. Seasonal Worker Considerations
Make sure all seasonal workers are correctly classified as temporary workers or independent contractors - and that they share your understanding. Consider how their classification affects workers’ compensation insurance, and make sure each seasonal employee has coverage, either under your policy or another’s.
Beyond their legal employment classification, give seasonal employees the same training you provide to permanent employees. This ensures smooth operation and protects everyone’s safety.
8. Summer Slowdowns
While some businesses get a summertime boost, others experience the summer slump. When this isn’t anticipated, it can wreak havoc on planning.
“With the blessing of summer, people take time to enjoy their family, friends and the outdoors. The problem is that even the best business plans typically divide annual goals by 52 weeks, ignoring the fact that seasonal slowdowns occur when employees and customers take more time off,” says Sara Frasca, CEO of Point NorthEast, a firm that helps small businesses set and measure goals. She suggests dividing your annual revenue goal, for instance, by 50 weeks instead of 52.
9. Increased Theft
Longer daylight hours and short-staffed businesses can give criminals easier opportunity. In fact, summer months often see a spike in theft. Check your alarm system and locks, and install lighting in any dark areas. Trim landscaping that grows faster in the summer that might provide good cover for criminals. Keep minimal cash on hand and valuables out of sight, never leave tools in parked vehicles, and add surveillance cameras in strategic locations. Finally, add trackers to any valuable, portable equipment that is easily stolen. Don't forget to ensure your commercial property insurance will cover the real cost of replacing any assets with the highest risk of theft.
Take the Right Steps To Reduce Summer Risk
“Seasonality is a big factor for many small businesses. While restaurants may see an increase in volume, orthodontists on the other hand may need to reduce or change their scheduling patterns when their school-aged patients are out of their school routines,” Frasca says.
No matter which ways summer affects your business, it will change your risk landscape. Consider which risks are most likely to affect your business. And use that knowledge to better prepare. First up is making sure you have the right business insurance coverage and to reduce your overall exposure as much as possible.
