Insurance Tips for Businesses With Seasonal Spikes

For businesses that experience seasonal surges, such as holiday retailers, summer tourism operators or winter sports vendors, insurance planning is crucial to managing risk and maintaining financial stability. Fortunately, by taking an active approach to business insurance, you can find the right policies at optimal price points.

5 Tips for Seasonal Business Insurance

Here are five tips that may help you secure and retain appropriate coverage that aligns with your seasonal insurance needs:

1. Adjust coverage. Don’t necessarily pay for year-round coverage if you can find a better deal and don’t need it. Work with your insurer to scale policies up or down based on your busy and slow periods. For example, increase liability and property coverage during peak months when customer traffic and inventory are highest.

2. Consider short-term policies. Some insurers offer short-term policies that can be activated during high-demand periods. These can be ideal for pop-up shops, seasonal employees or temporary equipment rentals.

3. Review business interruption insurance. Seasonal businesses are especially vulnerable to interruptions. A storm or supply chain issue during your peak season could be devastating and withhold profits you rely on to make it through the rest of the year. The right business interruption policy can cover lost income during these critical months.

4. Update inventory and equipment coverage. If you stock up heavily before your busy season, make sure your property insurance reflects the increased value of your inventory and equipment. Underinsuring can lead to significant losses if disaster strikes.

5. Reassess workers’ compensation needs. Hiring seasonal staff? Make sure your workers’ comp policy accounts for the influx. Misclassifying employees or underreporting payroll can lead to penalties or denied claims.

Get the Right Coverage

At Active Insurance in Brighton, Michigan, we can help businesses address their coverage needs, including those related to seasonal trends, and secure ideal policies. Contact our team today to learn more or compare personalized quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.