The holiday season brings more than just a sales surge; it brings new risks. Here are 7 common insurance mistakes small businesses make during the holidays, and how to avoid them.
The holidays are a prime time for small businesses; sales spike, staff grows, and deliveries pile up. But while you’re prepping for a strong finish to the year, hidden exposures can sneak in with the tinsel.
From hiring seasonal workers to stocking up on inventory, November and December bring new layers of liability. Here are 7 insurance mistakes small businesses make during the holidays, and how you can avoid them.
1. Not Updating Property Coverage for Seasonal Inventory
That extra inventory for holiday sales? If your commercial property coverage is based on last season’s numbers, you may be underinsured.
- Check your limits before the surge
2. Overlooking Workers’ Comp for Seasonal Staff
Seasonal employees = seasonal risk. Many business owners don’t realize that short-term or part-time workers still require proper coverage.
- Ensure your payroll reflects staffing changes.
3. Assuming General Liability Covers Holiday Events
Hosting a customer appreciation event or selling at a local pop-up? That’s added exposure.
- You may need a special event rider or higher limits.
4. Skipping a Review of Your Commercial Auto Policy
More deliveries = more risk. Whether you’re using your vehicle or your team’s, confirm you’re covered.
- Personal auto won’t cut it for business deliveries
5. Forgetting to Add New Equipment or Tech
Did you buy new POS systems, kiosks, or pop-up setups for holiday sales? Make sure they’re covered under your property or inland marine policy.
6. Not Having Cyber Protection for Online Shopping Rush
More online orders = more exposure to payment fraud or data breaches.
- Cyber coverage is no longer optional
7. Waiting Until January to Review Coverage
By then, it could be too late. Claims from the holiday season often reveal outdated or inadequate coverage.
- 📅Now is the time to schedule your end-of-year insurance audit.
Holiday Season = Audit Season
The most wonderful time of the year shouldn’t come with nasty insurance surprises. Get ahead of seasonal risks with a quick coverage review.
Book your complimentary holiday risk check with one of our experienced agents today. Let’s make sure you’re fully protected before the rush hits.
👉Download our free checklist to ensure your small business doesn’t risk any of the exposures during the holiday rush.
