Extreme winter weather events like frigid temperatures, strong winds, blizzards, sleet, and freezing rain have surged in frequency and severity throughout multiple regions in the United States — not just those with colder climates. The impact of extreme winter weather events on businesses can be devasting, resulting in major commercial building and vehicle damage in addition to lost production, sales, and income, additional transportation costs, and utility disruptions. In fact, 40% of small businesses never reopen following a natural disaster, according to the Federal Emergency Management Agency (FEMA) and the U.S. Department of Labor. Therefore, it’s crucial for businesses to take steps to safeguard their operations against winter storms.
Assessing Winter Weather Risks
Understanding weather-related risks plays a vital role in making informed decisions and taking appropriate actions to protect employees and property. This also allows you to proactively limit potential damage and enhance your overall storm preparedness.
Conduct a risk assessment.
First and foremost, carefully review and document your unique winter weather risks through in-depth assessments. These risks will vary based on factors such as location, industry, operations, workplace conditions, and employee responsibilities. For instance, businesses located in colder regions (e.g., the Midwest) or those that rely on outdoor operations may face greater winter weather exposures than others. In any case, by better understanding these risks, you can respond accordingly and adopt more effective mitigation methods. Common winter weather risks include the following:
- Structural concerns (e.g., burst or frozen pipes and water damage)
- Dangerous driving conditions and transportation delays or cancellations
- Equipment breakdowns and utility disruptions (e.g., heat and communication services)
- Electrical fires and power outages
- Employee illnesses and injuries (e.g., hypothermia, frostbite, cold stress, and slips and falls)
Stay informed.
To be aware of incoming winter storms, rely on proper communication channels and regional alert systems. You can generally expect to receive winter weather advisories and warnings several hours or days in advance from local news stations, mobile applications, and social media platforms. Furthermore, NOAA Weather Radio All Hazards (NWR) offers a nationwide network of radio stations that broadcast ongoing weather updates and forecasts from nearby National Weather Service offices. The NWR is available 24/7.
Steps to Take Before Winter Weather
Secure sufficient coverage.
A range of commercial insurance policies can provide much-needed financial assistance after winter storm-related losses. While specific coverage needs may vary based on industry and location, companies of all sizes and sectors should consider the following policies:
- Commercial property insurance — This coverage can help pay for the resulting repair and replacement expenses if your property is damaged or destroyed by certain perils. In the scope of winter weather, covered losses may include roof damage from heavy snow or water damage from the formation of ice dams.
- Commercial auto insurance — Such a policy can help cover medical, auto repair, and liability costs stemming from accidents involving commercial vehicles (e.g., crashes caused by icy roads or collisions due to low visibility during a blizzard).
- Business interruption insurance — This policy can help reimburse lost income and temporary relocation expenses if a covered event forces you to temporarily close your doors or halt operations. This coverage may apply if, for example, heavy snow causes a tree to collapse on a nearby property or frigid temperatures lead to frozen pipes, giving you no choice but to shut down and operate elsewhere until repairs can be made.
- General liability insurance — Such coverage can help pay for the associated costs if you are held responsible for causing third-party property damage or bodily injuries on your property or during operations (e.g., a customer being struck by a falling icicle or slipping on a patch of ice on company property).
- Workers’ compensation insurance — This coverage can help a business compensate its employees’ medical expenses and lost wages if workers experience occupational injuries or illnesses, including those caused by winter weather.
In addition to these insurance policies, keep in mind some winter weather-related losses may require specialized coverage. For instance, flood damage is typically excluded from standard commercial insurance policies. As a result, consider securing dedicated flood insurance to ensure ample protection against such damage. Businesses generally won’t receive coverage for winter weather-related losses caused by negligence, such as not keeping properties at warm-enough temperatures to prevent frozen pipes or failing to implement adequate snow removal and de-icing measures. Supplement your commercial insurance policies with effective loss control strategies.
Protect your property.
Without proper precautions in place, you may encounter severe commercial property damage at the hands of extreme winter weather. Fortunately, you can prepare your properties and minimize related damage by implementing these winter storm safeguards:
- Prioritize maintenance and repairs. By keeping the different structural and mechanical features of your properties in good condition, you can help limit the damage winter weather may cause. This means: inspecting the roof, gutters, drains, and downspouts for wear and tear; testing critical building components like heating, HVAC, electrical equipment, smoke and carbon monoxide detectors, and fire suppression systems; removing snow and ice from outdoor walkways, parking lots, and the roof; and utilizing landscaping techniques that minimize the risk of soil erosion from ice buildup and snowmelt and promote sufficient drainage.
- Leverage ample insulation and temperature controls. Prevent frigid air, snow, and ice from making it indoors is vital. This involves utilizing the following insulation and temperature controls: monitoring thermostats and always keeping temperatures above 40 degrees Fahrenheit; inspecting the attic, walls, and ceilings for cracks or holes and caulking or otherwise sealing them as quickly as possible; confirming windows, doors, skylights, ventilators, and shafts are weather-tight; and installing water-resistant insulation for the attic, pipes and building exterior.
- Protect valuable items and documentation. Store all essential machinery, technology, supplies, inventory, and documentation (e.g., computers, production equipment, emergency contact information, and insurance policies) in safe and secure locations, away from areas that may be more vulnerable to winter storm damage.
- Establish response plans and backup systems. Create emergency response plans that specifically address winter storms. Plans should outline emergency response team members and their primary responsibilities; gas, water and electric supply information; inventory and equipment details; and nearby disaster recovery services. You should also adopt data protection plans to ensure vital records and files are regularly backed up in the cloud or secure, off-site locations, thus allowing for continued access amid winter weather. Further, purchase and maintain various backup systems like emergency generators and portable heaters in case winter storms cause power outages or disrupt other utilities.
Safeguarding Employees
In addition to protecting your properties, safeguarding your people is paramount. Since winter storms can arise quickly, advanced planning and preparation can help reduce the chance of injuries and even loss of life. Take these actions to protect employees and others when winter weather occurs:
- Designate worker roles. In doing so, you can help employees better understand their specific responsibilities during winter storms and know what is expected of them before, during, and after such events.
- Establish communication procedures. These procedures include implementing companywide storm notification systems, creating strategies for knowing who is onsite when winter weather strikes, and appointing team leaders to communicate with and direct people during storms.
- Prepare emergency kits. Stock your commercial properties and vehicles with emergency kits to give employees the resources necessary to stay safe during winter weather. These kits may include flashlights, radios, cell phones, portable chargers and spare batteries, flares, spare tires, jumper cables, tow ropes, copies of insurance policies and emergency contact information, blankets, warm clothing, nonperishable food, bottled water, extra snow removal and de-icing materials (e.g., ice scrapers, shovels, and rock salt), and first-aid supplies.
- Implement adequate policies and procedures. Adopt workplace safety policies and procedures that limit winter storm exposure among their employees, especially those who work outdoors. These policies and procedures may include acclimatizing outdoor workers to frigid temperatures in small increments before scheduling them for longer shifts in such conditions, limiting total time spent outside in snowy and cold weather, offering hot liquids (e.g., noncaffeinated tea) to drink onsite and periodic breaks in heated areas, and providing necessary tools and personal protective equipment (PPE).
- Provide safety training. Educating employees on winter weather safety through routine training can make all the difference in helping them avoid associated injuries and illnesses. Include several topics in this training like ways to prepare for and remain safe during outdoor shifts in winter weather, the symptoms of cold stress, hypothermia and frostbite, and methods for driving safely in winter weather.
- Conduct regular drills. Such drills can help employees practice their responses to a range of winter weather scenarios. These drills should address items such as first aid, CPR, snow and ice safety, and ways to recognize and report potential hazards. Local officials and emergency responders can observe, advise or even participate in these drills.
While preparation may seem overwhelming, businesses can work with qualified insurance professionals to learn more about and assist with winter weather preparedness practices and policies. Contact us today for more information.