Holiday shopping, winter weather and other seasonal considerations can significantly alter how small businesses operate for multiple months a year. Determining how those changes might impact your business and the steps you should take to ensure you are protected from potential disruptions could be the difference between having a successful end of the year and not.
We talked to Rachel Kallmyer, Industry Lead at Travelers, about what you can do to make sure your business keeps running smoothly.
Question: The winter season brings a separate and unique set of risks for small business owners compared with other times of year. What should small business owners be focused on when determining their risks?
Rachel Kallmyer: The holiday season is an exciting time and can bring a lot of opportunity for small businesses to expand their customer base and revenues, but it can also create added risks. There are four key areas small business owners should think about when planning for changing risks during this time of year: worker safety, sales, weather and operations. Understanding the risks in each of these categories, taking proactive steps to reduce them, and talking to a trusted insurance agent to make sure they are protected from potential disruptions can help owners keep their small business running smoothly during this busy time of year.
Question: What are the key considerations to remember about worker safety during this time of year?
Kallmyer: The holiday shopping season can be the busiest time of year for many small businesses – and this extends beyond just retail stores. Restaurants can be extra crowded with additional shoppers out and about. Salons may be fully booked as clients prepare for holiday events and parties. Even professional offices can see an influx of customers as people squeeze in last-minute appointments to end the year. With that, businesses must first make sure all their employees are properly trained, including familiarizing them with safety procedures and what to do in the event of an emergency. This is especially important if they are hiring temporary workers to handle an increase of seasonal business. According to the 2024 Travelers Injury Impact Report, 39% of all workers compensation claims in the retail industry are due to first-year employees getting hurt, above the overall average of 35%.
Question: The end of the year is also a time when a lot of businesses see increases in sales. How can business owners make sure they are managing that side of the business effectively?
Kallmyer: Increased shopping during this time of year can result in both heightened cyber threats and the need for additional inventory to keep up with demand.
Small businesses need to be cyber aware. Cyber threats are not just a concern for big companies. If a business handles customer data, offers online shopping or processes payments electronically, cyber-attacks are possible. Business owners should take proactive measures to protect against potential cyber threats, such as implementing multi-factor authentication, regularly backing up data, promptly patching vulnerabilities and developing an incident response plan. An insurance agent can also recommend cyber coverage options to provide added protection in the event of a breach. Many cyber policies now even include preventative and pre-breach services to help reduce the risk of a cyber threat.
Carrying additional inventory either on location or off-site also creates an additional risk. Business owners should make sure insurance policies cover increased inventory and update them to include any additional locations where inventory might be stored.
Question: Winter weather can be unpredictable. How do small business owners factor that into their planning?
Kallmyer: Monitor weather throughout the winter. Slips, trips and falls can increase with bad weather, particularly with snow and ice as winter arrives. Being prepared with a strong plan can help reduce those risks. Identify locations that are at most risk to be affected by hazardous weather. That doesn’t mean just by the front door! Parking lots, sidewalks, back doors and loading areas are also susceptible. Create a snow and ice removal plan and make sure everyone who works for you knows their role and responsibilities in case of bad weather. If you decide to hire a company to handle snow and ice removal, make sure they are properly insured and provide detailed invoices. That will help if a potential claim arises after the work is completed.
If severe weather is predicted, have a plan for operations. Determine if you will close or cancel appointments for the day. Be prepared for potential power disruption with backup plans in place. Cold and severe weather can also increase the risk of damage to property and inventory. Outdoor property and stock should be moved inside or adequately protected from inclement conditions. If you own your premises, make sure all routine and preventative maintenance is complete. If you rent, make sure you are communicating with your landlord immediately if any issues are spotted, to minimize disruption to your business.
Question: Business owners might alter their operations during this period. Are there any hidden risks there?
Kallmyer: Businesses might host special events, alter their decor or even close for an extended period during the winter months. Each of these changes from normal operations carries different risks. If you are planning to host a special event at your business either individually or with a group of other business owners, make sure you are protected from anything unique that wouldn’t otherwise be part of your regular operations. This includes properly vetting any outside vendors you hire. Talk to your insurance agent about whether you need a special event policy to cover additional features such as serving alcohol or hosting Santa.
Holiday decorations and special displays also add new potential risks. Putting up string lights and other electronic decor can increase your risk of fire. Make sure they don’t overheat from extended use and place them on timers to ensure they are turned off when your business is closed. Additionally, to reduce potential trip and fall hazards, keep entryways and aisles clear of special holiday displays and decorations.
If you decide to close for an extended period, make sure you have a plan to check on your business while you are away, just like you would do to protect your house on an extended vacation. Make sure your thermostat isn’t set too low, lock up all points of entry and have backup local support if you are notified of an issue.
Question: Is there anything else small business owners should know?
Kallmyer: Even if you take all the best precautions, issues can still arise. If that’s the case and you need to file an insurance claim, do so immediately. Notify your agent and insurance carrier and document the situation surrounding the claim in detail. Doing this can help you resolve the issue swiftly and with as minimal a disruption to your operations as possible, which is especially important during such a busy time of year.
Rachel Kallmyer is the Industry Lead at Travelers.
Holiday retail stock image by BearFotos/Shutterstock
