Business Owners, Are You Covered for Holiday Risks?
The holiday season is one of the busiest—and riskiest—times of year for small business owners. Whether you’re dealing with higher foot traffic, seasonal employees, increased inventory, or supply chain slowdowns, one thing is clear: your commercial insurance policy needs to be ready for the holiday rush.
Too many business owners assume their standard coverage has them protected for everything that could go wrong. But seasonal business risks can expose hidden gaps in your policy—and lead to costly claims at the worst possible time.
So before the gift-buying frenzy, last-minute shipments, and holiday events ramp up, here are the business insurance tips every owner should review to stay safe, protected, and profitable this season.
1. Seasonal Crowds = Higher Liability Exposure
With more customers walking through your doors or browsing your pop-up booth, the chances of accidents go up.
Are you covered for:
- A customer slipping on wet floors or snowy sidewalks?
- A falling decoration or display causing injury?
- Product liability claims if something you sell causes harm?
Your general liability insurance should cover bodily injury and property damage claims, but it’s important to review your policy limits to ensure they’re high enough for holiday-level foot traffic.
Hosting an in-store event, sale, or open house? That could require additional or short-term event liability coverage depending on the risk level and number of attendees.
2. Is Your Inventory Coverage Keeping Up with the Season?
Most businesses increase their stock ahead of the holidays. But if you don’t increase your business personal property coverage accordingly, your insurance may fall short in the event of a loss.
Ask yourself:
- Have I recently purchased or received a large inventory shipment?
- Are high-value items stored on-site, off-site, or in transit?
- Would my current policy limits cover my seasonal inventory if disaster struck?
If not, consider adding a peak season endorsement—a smart, affordable way to temporarily boost your protection during busy months.
3. Seasonal Hires and Employee Risk
Do you bring on temporary or seasonal employees during the holidays? Make sure they’re factored into your:
- Workers’ compensation insurance
- Employment practices liability coverage (EPLI)
Even part-time and temporary workers can file claims for workplace injuries or HR-related complaints. Confirm that your policy reflects your actual staffing structure and any increases during the holiday season.
4. Cyber Risks Rise with Holiday Sales
More online sales mean more digital traffic—and more opportunities for cybercriminals to strike. Phishing scams, data breaches, and fraudulent transactions spike during the holidays.
If you collect customer data or process payments digitally, consider:
- Cyber liability insurance to protect against hacking and data theft
- Business interruption coverage for losses caused by a cyberattack
Small businesses are increasingly targeted by cybercriminals, and the holidays are peak season for cyber scams. Don’t let your digital front door stay unlocked.
5. Delivery Vehicles and Holiday Logistics
If your business handles its own deliveries, pickups, or mobile services, you may need to review your commercial auto policy or add hired/non-owned auto coverage for seasonal drivers.
Common oversights include:
- Employees using personal vehicles for work-related deliveries
- Contractors or gig workers not covered under your policy
- Inadequate liability limits for commercial vehicle use
One fender bender could become a major liability if your coverage isn’t structured properly.
6. Supply Chain Delays and Business Interruption
The holidays often strain supply chains. If you’re relying on just-in-time shipments or facing delivery delays, a disruption could impact your ability to fulfill orders.
While not all interruptions are insurable, business interruption coverage can help if your operations are suspended due to a covered loss (like fire, theft, or storm damage). It may cover:
- Lost revenue
- Rent and utilities
- Payroll expenses
- Temporary relocation costs
Talk to your agent about contingent business interruption insurance if you rely heavily on a single supplier.
7. Decorations, Fire Hazards, and Property Damage
Festive decorations are great for business—until they create a hazard. Be mindful of:
- Overloaded electrical outlets and extension cords
- Dry trees or wreaths near heat sources
- Fireplaces, candles, or portable heaters
Most commercial property policies cover fire damage, but you’ll want to make sure your fire prevention systems (sprinklers, alarms, extinguishers) are up to code—and that decorations don’t compromise safety.
Let’s Make Sure You’re Covered This Holiday Season
The holidays should be your most joyful (and profitable) time of year—not your most stressful. At Famous & Spang Insurance, we help small business owners across Maryland protect their operations, people, and profits with customized coverage that works.
Now is the perfect time for a commercial policy review. We’ll walk through your risks, review your current coverage, and identify smart ways to strengthen your protection before the busy season peaks.
Call us at 410-272-2300
or
Visit famousspanginsurance.com to schedule a commercial insurance consultation today.
Let’s make sure the only surprises this season come gift-wrapped.
