Six seasonal business insurance pitfalls and how to avoid them

Whether your business sees a surge in demand at Christmas or slows down and closes for the week, the festive season presents unique challenges when it comes to your insurance. Of course, increased risk means there is more likelihood of a claim being made which is never good news for your future renewal costs.

Here, we outline the most prevalent insurance risks over the Christmas period and some simple measures you can put in place to protect your business, so you can let your hair down and enjoy the festivities with total peace of mind.

Deck the halls… with care!

If your business is anything like ours at Quote Me Today, you’ll love to get in the festive spirit and decorate your premises. But even adorning your office with all things sparkly comes with its own dangers – here’s our tips to avoid unnecessary hazards.

• When hanging items at height, you’ll need to ensure that you provide the correct equipment and guidance (e.g. a stepladder as opposed to standing on a chair or desk) to prevent staff accidents which could turn into a nasty claim against your employers’ liability insurance.
• Any hanging items should be placed in locations where they are least likely to fall onto employees, customers or third parties, or cause damage to property and equipment. Appropriate fastenings should always be used, suitable for the weight of the decoration.
• Your business PAT testing may not have included your Christmas lights, so you need to make sure these are safe for use and comply with all current safety standards.
• Draping easily flammable items like tinsel near heat sources can also be dangerous, as well as the possibility of decorations obscuring fire extinguishers, emergency lights and signage, or blocking fire escapes.
• Beware of trip hazards from Christmas lighting cables or decorations placed in high traffic areas.
• If you’re going ‘au naturale’ this Christmas with a real tree, these can easily become a fire hazard when dry – keeping them watered every day reduces this risk. You’ll also want to make sure all your internal doors are closed to prevent the spread of fire should one occur and check your fire alarms are working correctly before you leave.

‘Tis the season to stock up

If your company sees an increase in seasonal trade, you may have more stock on your premises around Christmas time. Many business insurance policies do allow for this, but you should check the terms of your policy to make sure you are covered as if you are underinsured you may lose money in the event of a claim.

Too much prosec-ho-ho-ho?

Work Christmas parties can sometimes get out of hand, particularly when there’s a free flow of alcohol. Whilst everyone likes to let loose, it’s absolutely possible that someone could say or do something that could leave your company or its directors in disrepute. That’s why it’s vital to have both employers’ liability and Directors & Officers Liability, should a claim be made against you.

In addition, when staff are literally full of Christmas spirit (we’re talking gin, sherry and mulled wine), there’s a greater chance for falls and accidents, which could result in legal action being taken against the company. Being mindful of alcohol consumption and ensuring there is plenty of food on hand are good ways to reduce this risk. If you have a company fleet, you should also ensure any drivers are aware of the implication of driving when tipsy (even if they’ve only had a couple). Laying on additional transport to and from your venue is always a great option to avoid potential fleet vehicle claims.

Food Elf and Safety

It’s no secret that many of us tend to over-indulge in the run up to Christmas. Whilst it’s lovely to have a treat at work, employers’ need to be mindful of special dietary requirements and provide clarity about potential allergens for any food supplied on your premises or at your party venue.

If you’re organising a work buffet (who doesn’t like a bit of ‘beige’ food), you’ll also need to take precautions, adhering to food preparation and storage guidelines. One of the biggest risks is keeping leftovers when the items have already spent a significant time at room temperature. When it comes to food, it’s always better to be safe than sorry because no one wants their workforce off with food poisoning or a potential negligence claim made against you by a sick employee.

People up to snow good

Burglars are opportunists and often take advantage of the shorter days, cover of darkness and increased vulnerability of your business premises being closed over Christmas when no-one is around. The good news is, there are steps you can take to reduce your business being targeted.

• Secure/lock away any expensive equipment.
• Make sure nothing is visible that could attract or entice potential burglars.
• Check your security systems (lights, alarms and CCTV) are working correctly as these can act as a deterrent.
• If you have a third-party security partner, advise them of your business opening hours to reduce false alarms and to ensure they know when to act if someone is in your office when it’s supposed to be closed.
• Double check all doors, shutters and windows are locked before you close the office for the Christmas break.
• Check your insurance policy terms, particularly any unoccupancy clauses to ensure you are fully covered.

Dreaming of a white Christmas?

For some, fresh snowfall on Christmas day is a dream. But for others, it could result in frozen pipes and the start of a financial nightmare. Wintery weather conditions such as snow, ice and floods certainly take their toll on our business premises and can threaten the structure and fabric of any building. Carrying out routine checks at the beginning of December (e.g. flat roofs and guttering) allows you sufficient time to address any issues that could escalate and cause property damage during the festive season. As a precaution, leave the heating on over your Christmas business shutdown, but turn it down so it is just high enough to prevent frost and protect your pipework.

As with a lot of risk management advice, the above is predominantly common sense, but such advice can easily be overlooked when we’re busy. As a broker, we’re all too aware of the financial and reputational damage small oversights can cause. That’s why we’re passionate about making sure our customers have the right level of cover in place. If you have any questions about an existing policy you hold with us or would like a second opinion on your insurance arrangements, our experienced insurance advisors are here to help. Simply call 01227 285540 or email admin@quotemetoday.co.uk.