4 Major Risks Your Small Business Faces in Winter

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Cold, ice, and snow can pose big risks to small businesses. It’s smart to prepare ahead of time to keep your small business out of the cold.

One way in which cold weather can hurt your business is by causing serious property damage. Winter also can threaten your business with increased liability risks — for example, if a customer or delivery person gets hit by a falling icicle or trips on a slippery walkway.

You can protect your small business by making sure you’re properly covered with the right business insurance and by learning about the various ways cold weather can cause problems for your company, as well as how to prepare ahead of time to avoid or minimize the damage. Here are four ways winter can wreak havoc on your small business.

1. Water Damage Caused by Frozen Pipes

When temperatures dip, water can freeze in your plumbing, causing pipes to burst and resulting in hundreds or thousands of dollars in water damage. Frozen pipes that burst can damage your floors, walls, and other structural elements.

This type of disaster is more likely to happen when you and your employees are away for an extended period, such as over the December holidays. Fortunately, you can take simple preventative measures to help keep your pipes from freezing, according to the Insurance Institute for Business & Home Safety. For example:

Seal your workplace. Hire a qualified contractor to caulk or otherwise repair cracks or holes in the exterior of your building that could allow cold air inside. Make sure your building is properly insulated and cover any pipes at risk of freezing.
Keep the temperature consistent. Set the thermostat to maintain an even temperature inside your business at night and over weekends and holidays. Consider installing a monitoring system to alert you if the temperature falls below a designated number.
Prevent pressure buildup in pipes. Keep an eye on weather forecasts. When winter storms or extreme cold are predicted, leave the faucets in your building slightly open so they drip steadily to help prevent freezing.
Obtain back-up power. Install a generator or other source of power that can keep your building warm in case of a power outage caused by a winter storm.

Commercial property insurance may help pay to repair or replace your owned or rented physical assets — such as office space, tools, equipment and inventory — if it’s damaged by a covered loss like water from burst pipes. However, it generally does not cover flood damage (water entering from outside the building). Flood insurance is a separate policy.

Expert Tips:

Formalize a freeze prevention plan. Train staff to spot freeze risks and implement cold weather procedures if temperatures are supposed to drop significantly.
Use technology: Install low-temperature alarms and thermometers, with hourly rounds in critical areas to your business. Integrate water leak sensors for early alerts. Be sure to ask your insurance company about these technologies, as many insurers offer sensor technology for free.
Temporary heating: If you have to use temporary heating at your owned business property, use indirect-fired heaters instead of direct-fired units for safety. Ensure all heating equipment is inspected and documented.

Taking these easy steps can greatly reduce your risk of a frozen pipe disaster.

2. Collapse of a Roof Due to Heavy Snow

If a snowstorm dumps too much snow in your area, the sheer weight of the white stuff can cause your roof to cave. In fact, every foot of snow on a roof exerts between five and 50 pounds of pressure per square foot, depending on the density of the snow, according to Summit Engineering, a construction administration and inspection company in New Hampshire.

Find a licensed, bonded, insured roofer or general contractor you can call to safely remove snow from your roof. Never let two or more feet of snow accumulate on top of your building without calling in the pros for removal.

Expert Tips:

Roof maintenance: If you own your building where your business operates out of, you know how important it is to take care of your property. Before snow or precipitation occurs, inspect and clear roof drains and gutters. Consider using de-icing cables or mats to prevent ice dams and excessive weight on your building’s roof.
Monitor roof conditions: Assign responsibility for periodic monitoring of roof conditions, especially after storms. Inspect for drifting snow and ice dams that could lead to overloading or pose a risk to those below it. Call a professional if you notice more than two feet of snow accumulating on your roof.

3. Slip-And-Fall Accidents Due to Icy Walkways

Slip-and-fall accidents can be costly and even lead to lawsuits.

If a customer or visitor falls, the incident would be covered under the liability coverage of your business insurance. In fact, slip-and-falls account for about 20% of business insurance claims, according to 2025 claims numbers from The Hartford.

If you have a Business Owner’s Policy (BOP), from The Hartford, general liability insurance is included in your coverage. If a customer slips and falls at your business and suffers an injury, you could be liable for their injuries and medical expenses. General liability insurance can help pay for medical costs and legal fees.

If an employee slips and falls, that would be covered by separate workers’ compensation insurance. That’s why it’s important to make sure you have both types of coverage.

To reduce the risk of slips, put a winter weather plan in place to handle winter weather hazards quickly.

Create a written plan that includes:

Promptly removing snow from walkways and in parking lots
Sprinkling salt on icy spots outdoors
Putting mats with non-skid backing at the entrances to your building
Checking floors regularly and quickly mopping up any puddles caused by melting snow falling off boots or shoes
Using “wet floor” signs if necessary
And, finally, keep a safety log with records of the times and dates you perform these safety measures.

Expert Tips:

Site security: During shutdowns or severe weather, make sure your doors, windows and valuable equipment has been secured. Consider security cameras with remote monitoring features for additional oversight and documentation.
Loose materials: Secure loose items (tables, chairs, umbrellas, etc.) outside to prevent wind damage or projectiles during storms.

4. Winter Storms That Bring Business to a Halt

Winter storms that delivers significant amounts of snow of snow may force your business to shut down for days or weeks. For example, New Jersey business owner Allison Dorst, who sells sportswear online, could not operate her business for a week after a snowstorm caused a power outage. Fortunately, she had business insurance and received a check for $10,000 from her insurance company to cover her losses and the cost of moving her inventory so that it wouldn’t be harmed by melting snow seeping into her basement.

It’s also important to get a policy with business income insurance, also called business interruption insurance, which can replace income lost when a covered your costs until our business is up and running.

If your business does get hit with a loss due to winter weather, you can turn to your business insurance. If you incur any property damage, let your insurer know as quickly as possible so they can work with you to get the necessary repairs made quickly, to prevent additional damage from water, snow, or ice. Also notify your insurer promptly of any liability issues, such as a slip-and-fall incident.

Expert Tips:

Emergency and disaster planning: Develop a weather impact and disaster recovery plan before winter begins. Assign key responsibilities, stock up on supplies and document any vendor contacts your team can call for emergency repairs and restoration.
Power redundancy: Arrange for backup generators with local vendors so you can keep your business open if the power goes out. Install automatic transfer switches for quick connection during power outages.
Restoration: After a major storm, thoroughly assess your property for any possible damage before turning all your systems on. Contact qualified contractors for any repairs or restoration needed. Always contact your insurance company or agent if you have questions or need to file a claim.

By taking these extra precautions, your business can minimize losses, recovery quickly and stay resilient through even the harshest winter conditions.

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