Small Business Risks

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From Water Damage to Roof Damage, What’s Covered?

small business riskCold, ice, and snow can pose small business risks. 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. In fact, 15% of all small business property and liability claims result from water damage and freezing damage, according to claims data from The Hartford. Winter also can threaten your business with increased liability risks. For example, a customer or delivery person can get hit by a falling icicle or slip and fall on a slippery walkway.
 
You can protect your small business by making sure you’re properly covered with the right business insurance for small business owners. You can also make sure you learn about the various ways cold weather can cause problems for your company. This can help you 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. This can cause pipes to burst, which can result in hundreds or thousands of dollars in commercial water damage. Frozen pipes that burst can damage your floors, walls, and other structural elements. Water from bursting pipes can also damage your inventory, equipment or office furnishings.
 
This type of disaster is more likely to happen when you and your employees are away for an extended period, such as over the winter holidays or during a weekend. Fortunately, you can take simple preventative measures to help keep your pipes from freezing.
 
  • Seal your workplace. Hire a qualified contractor to repair cracks or holes in the exterior of your building that could allow cold air inside the structure. Make sure your building is properly insulated and cover any pipes that run the risk of freezing.
  • Keep the temperature consistent. Set the thermostat so it maintains an even temperature inside your business at night and over weekends or holidays. Consider installing a monitoring system to alert you if the temperature falls below a specified number.
  • Prevent pressure buildup in pipes. Keep an eye on weather forecasts. When winter storms or colder temperatures are predicted, leave the faucets in your building slightly open. You want them to drip steadily to help prevent freezing.
  • Obtain back-up power. Install a generator or other source of power that can help keep your building warm in case of a power outage caused by a winter storm.
These 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 it can cause your roof to cave. This can cause quite a bit of roof damage.
 
Find a licensed, surety bonded and insured roofer or general contractor. They can 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.
 

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

water damageSlip-and-fall accidents can be costly and even lead to lawsuits. For instance, say a customer or visitor falls at your business. The incident would be covered under the liability coverage of your business insurance. In fact, slip-and-falls account for about 10% of business insurance claims, according to our own claims numbers.
 
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
  • Keeping a safety log with records of the times and dates you perform these safety measures.

4. Winter Storms That Bring Business to a Halt

Winter storms that deliver significant amounts of snow may force your business to shut down for days or weeks. For example, say a winter storm hits your area. Due to unsafe conditions, your business is forced to shut down for a few days. Your business income insurance can help replace your lost income during the temporary time your business was shut down.
 
Further, if your business gets hit with a property loss due to winter weather, business insurance can help cover the repairs to the damaged property. Let your insurer know as soon as possible so they can work with you to get the necessary repairs made quickly. This can help prevent additional damage from water, snow, or ice. Also notify your insurer promptly of any equipment damage for replacement costs or liability issues, such as slip-and-fall incidents.
 
Taking these steps can help you weather the risks of winter and help protect your business from even the worst storm.
 
Do you have questions about types of business risk? Contact The Hartford today and let us help put your mind at ease. No matter what kind of business, claim or risks you are facing, we have a solution – get a quote today.
 
The Hartford shall not be liable for any damages in connection with the use of any information provided on this page. Please consult with your insurance agent/broker or insurance company to determine specific coverage needs as this information is intended to be educational in nature.
 
The information contained on this page should not be construed as specific legal, HR, financial, or insurance advice and is not a guarantee of coverage. In the event of a loss or claim, coverage determinations will be subject to the policy language, and any potential claim payment will be determined following a claim investigation.
 
Certain coverages vary by state and may not be available to all businesses. All Hartford coverages and services described on this page may be offered by one or more of the property and casualty insurance company subsidiaries of The Hartford Financial Services Group, Inc. listed in the Legal Notice.
 
The Hartford Financial Services Group, Inc., (NYSE: HIG) operates through its subsidiaries under the brand name, The Hartford, and is headquartered in Hartford, CT. For additional details, please read The Hartford’s Legal Notice.
 
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