If you’re a business owner, you know that the seasons can bring unexpected surprises that can disrupt your operations. You may face risks from extreme weather or product shortages due to seasonal changes that could cost you time and money. But did you know there are insurance policies available to help protect your business against some of these seasonal risks? Let’s dive in and explore the different types of insurance options out there for seasonal changes in your business.
Property Insurance for Extreme Weather Events
We all know how unpredictable Mother Nature can be. Heavy rain, hail, and windstorms can cause property damage to your business premises or equipment. A good property insurance policy will protect you against losses related to damages caused by severe weather events. But did you know that most business property policies do not include coverage for floods or earthquakes? There are options available for covering against these risks, and your business may be better protected if you have them in place.
Business Interruption for Contingent Businesses
If your business relies heavily on seasonal products or inventory, a product shortage could have serious financial implications for you. If you rely on suppliers to provide you materials, supplies, food products, or other goods and services – your business may have a contingent risk. Business interruption coverage may help protect you if a supply chain issue results in your business being unable to build inventory or meet increased demand.
Increased Value for Seasonal Changes
If Spring is one of your busiest times of year, it is likely you stock up on inventory or increase your production to meet demand. This may mean you have higher than normal value on this inventory, seasonal employment increases, higher operating costs, more business income, and additional risks that may be significantly different than other times of year. It is important to factor these into your coverages, and possibly even look at “peak season endorsements” or other options for coverage.
We may not know what’s in store as the seasons change, but we can be better prepared. Get in touch with Brandon Patterson at our agency by calling 865.453.1414 or emailing brandon@ownbyinsurance.com to discuss your seasonal risks and the coverage options you may have available.