Winter months can be extremely difficult for property owners. Those who live in harsh climates must prepare for ice, snow, and bone-chilling weather. They need to shovel wind-blown snow on rooftops, clear and treat walkways and parking lots, manage road transportation during snow and icy conditions, and put up with freezing pipes. Winter-related damage ends up costing businesses billions of dollars each year. According to the Insurance Information Institute, December 2022 saw one of the costliest winter storms since 1950, leading to $3.5 billion in insured losses.
In this article, we will explore the importance of protecting your commercial property and operations from cold weather.
Understanding The Winter Risk
The cold season brings several hazards that can disrupt operations and impact your bottom line. Here’s a more detailed exploration of these common threats:
1. Property Damage: The Icy Peril
Property damage during the winter months can be substantial, leading to significant financial losses for businesses. This, in turn, can lead to increased insurance premiums as well. It’s crucial to understand the specific risks involved:
- Frozen Pipes: One of the most common winter-related issues is pipes freezing over during winter. Frozen pipes can then burst, causing water damage and costly repairs. This risk is particularly high in properties with inadequate insulation and/or inadequate water damage mitigation systems such as “flow monitors.”
- Roof Collapses: Accumulation of heavy snow and ice on roofs can lead to structural damage or even roof collapses. This not only poses a danger to occupants but also results in substantial repair expenses.
- Structural Damage: Cold temperatures can cause materials to contract and expand, potentially leading to cracks in building structures. Timely inspections can identify and address these vulnerabilities.
2. Business Interruption: Chilling Disruptions for Businesses and Suppliers Alike
Severe winter weather can bring operations to a grinding halt, leading to business interruptions that may have long-lasting effects. These may be because of:
- Power Outages: Winter storms can knock out power for extended periods, disrupting critical systems, including heating and security. Investing in backup generators is essential to keep your business running during outages as well as mitigating consequential damage and losses.
- Transportation Delays: Winter road conditions can lead to transportation delays, impacting the delivery of goods and supplies. Companies relying on timely deliveries must have contingency plans in place.
- Workforce Challenges: Winter weather can make it difficult for employees to commute to work, leading to reduced staffing levels. Remote work options and flexible schedules can help mitigate this challenge.
Winter weather can disrupt supply chains, affecting businesses that rely on the timely delivery of products and materials:
- Supplier Delays: Suppliers may face their own weather-related challenges, such as winter hazards for large vehicles, causing delays in the shipment of essential goods. Maintaining good communication with suppliers and having alternative sources can help mitigate these disruptions.
- Inventory Management: Inventory management becomes critical during winter. Companies should stockpile essential items and consider warehousing options to ensure they can meet customer demand even during severe weather.
3. Liability Concerns: Slippery Slopes
Liability issues can arise from accidents and injuries that occur on your property due to winter weather conditions:
- Slip and Fall Accidents: Icy walkways and parking lots increase the risk of slip and fall accidents. Businesses must diligently maintain their premises, promptly clear and treat ice and snow, and provide adequate warning signs to mitigate liability.
- Vehicle Accidents: Icy roads can contribute to vehicle accidents, especially in areas where businesses are responsible for parking lot maintenance. Ensuring safe driving conditions is a crucial responsibility.
Fortifying Your Business Against Frost & Freeze
As winter approaches, businesses must take proactive steps to protect their commercial properties and operations against the chilling threats of frost and freeze. Here are some essential measures that apply across various industries to ensure resilience during the winter season:
1. Property Inspections: The Foundation of Winter Preparedness
Before the first snowflake falls, schedule a thorough property inspection. Identify areas vulnerable to winter damage, such as:
- Roof Assessment: Ensure your roof is in good condition and can withstand the weight of snow and ice. You should immediately repair any existing leaks or weaknesses. This is a major part of “winterizing” your property. According to the National Institute of Building Sciences (NIBS), proactive roof maintenance can extend a roof’s lifespan by up to 50%, reducing the risk of costly winter-related damage.
- Exterior Checks: Seal any gaps or cracks in the building’s exterior to prevent cold drafts and moisture infiltration.
- Heating Systems: Service and test heating systems to ensure they are in optimal working condition. Clean or replace filters for improved efficiency.
2. Insulation: Keeping the Cold at Bay
Proper insulation is key to maintaining a comfortable and energy-efficient indoor environment. It is the second step towards winterizing your property. You should consider insulating exposed pipes to prevent freezing and bursting. This simple step can save you from costly water damage repairs.
It is also important to seal gaps around windows and doors to prevent drafts. Weatherstripping and caulking are effective tools for this purpose. Not only does it keep your property safe, it can also reduce insurance premiums in the long haul and can reduce heating and cooling costs by up to 20%!
3. Emergency Power: Avoiding Costly Downtime
Investing in backup power solutions can be a game-changer during winter storms and power outages. Consider installing generators to keep critical systems operational, including heating, security, and lighting. Remember, your solar panels may not be as effective during the winter, so having a backup is very important.
Businesses should also consider implementing a battery backup system for essential equipment and data centers to prevent data loss. The Federal Emergency Management Agency (FEMA) estimates that power outages cost businesses in the United States over $150 billion annually. This is particularly the case for those relying on data servers and similar equipment.
4. Snow and Ice Removal: Clearing the Path to Safety
Promptly clearing snow and ice from walkways and parking areas is essential for safety and business continuity. Consider contracting professional snow removal services to ensure timely and thorough snow clearing. If you are going to do it yourself, make sure you keep in mind the necessary plowing safety tips at all times.
Businesses should also stock up on deicing materials like rock salt or calcium chloride to prevent slippery surfaces. Slip and fall accidents on icy surfaces account for more than 1 million emergency room visits in the United States each year, according to the National Safety Council. Consequently, they account for 16% of all claims and 26% of all costs pertaining to winter worker’s compensation.
5. Insurance Review: Adequate Coverage for Winter Risks
And finally, review your commercial property insurance policy to ensure it offers comprehensive coverage for winter-related risks:
- Policy Assessment: Work with your insurance provider to understand your coverage limits and any potential gaps in protection.
- Winter Additions: Consider adding endorsements or riders to your policy to specifically address winter weather risks.
Embracing the Winter Shield with Acadia Insurance: Your Path to Resilience
Just as snowplow operators take steps to reduce accidents and liability claims, you too can take proactive steps to protect your business and its future. Whether you run a healthcare facility, manage logistics, or lead any other industry, the principles of winter readiness remain universal.
At Acadia Insurance, we stand as your partner, committed to providing the security and peace of mind you need. We’re not just an insurance provider. We are your dedicated support system, there for you every step of the way.
Our mission is simple: to help businesses throughout the Northeast thrive. We understand that what you want most from your insurance is security and peace of mind. With Acadia, you can receive coverage tailored to your needs and the unwavering support of dedicated claims professionals. We will guide you through the claim process and more, as the need arises. With us, you know what to expect, and you know the name of the experienced claims professional that will be by your side every step of the way. – that’s “Closer Coverage.” Get to know more about how we work and find an agent near you by going to the Find an Agent section on our website (www.acadiainsurance.com).
Let Acadia Insurance be your shield against the frost and freeze. We’re here to help you ensure that your business not only weathers the winter but emerges stronger and more resilient on the other side!
Acadia is pleased to share this material for the benefit of its customers. Please note, however, that nothing herein should be construed as either legal advice or the provision of professional consulting services. This material is for informational purposes only, and while reasonable care has been utilized in compiling this information, no warranty or representation is made as to accuracy or completeness. Recipients of this material must utilize their own judgment in implementing sound risk management practices and procedures.
