How a Business Should Prepare for a Snowstorm

For many, news of a snowstorm means a day off from school or work with some minor shoveling duties. For businesses – particularly smaller companies – these incidents can be devastating. Companies with limited resources could face structural damage, loss of revenue, high-dollar repairs, severed supply lines and potential accidents on the premises, resulting in liability lawsuits in the aftermath.
In fact, snowstorms result in economic losses totaling billions of dollars each year. In order for a business to recover, sufficient insurance is an absolute must, in addition to the following:
Preparation
What type of damage could your company’s facility experience from the snow?

• Water damage
• Roof collapse
• Flooding
• Fallen trees and branches hitting a building or car
• Frozen pipes bursting
• Signs, sidewalks, mail boxes and vehicles getting scratched or dented by plows

In most of these cases, your company can take preventative measures to reduce the damage:

• Reduce drafts, leaks and cracks, as these may invite water to enter, freeze and expand, then damage your facility’s interior, roof or plumbing system.
• Clear out and shut off your outdoor plumbing system.
• Replace older weather stripping.
• Have your roofs and gutters inspected and repaired in advance of the storm.

Along with any subsequent damage your facility could experience, a claims adjuster may stop by your property, determine you didn’t prepare adequately and deny your claim or reduce compensation for this reason.
Clear Snow and Ice After the Storm
Before your employees and customers return, make a plan to have your property cleared of all snow and ice. This not only gives them space to park and access your facility, but further reduces incidents of slips and falls. Otherwise, if ice remains on the sidewalk and snow piles in dense clumps in the parking lot, someone visiting may slip, sustain an injury and file a lawsuit.
Use a Backup Generator
Storms cut off power, which in turn causes businesses to temporarily close up shop. In the meantime, your company isn’t bringing in any revenue or corresponding with its clients. Although business interruption insurance can compensate you for the time your doors are closed, one way to return to work quicker is to have a backup generator on hand. These machines can give your facility power even when the electrical lines are down.
Put Together Records of Equipment and Inventory
What would happen if you had to file a claim for property damage? As a first line of defense, it’s always a good idea to know what repairs are needed. One approach is to put together a record – both in writing and photographic evidence – of all equipment in your facility, the building’s conditions before the storm and any merchandise you carry.
Understand Your Insurance Policies
After the storm, you may end up filing claims with your Business Owner’s Policy, property or equipment insurance carrier. As you do, understand what these policies do and do not cover. For many commercial property policies, you’ll be compensated for any damage to your building and its contents from the snowstorm itself, but if the melting precipitation results in a flood, your policy doesn’t extend to this type of natural disaster.
Have a Business Continuity Plan
From cancellations to filing claims, make sure that your company has a business continuity plan well before the storm that encompasses the following:

• Updating employees about storm warnings, closings and when they’ll return to work.
• Communicating with your suppliers or vendors concerning cut-off supply lines and order statuses.
• Reaching out to your customers for any delays in services or interruptions.
• Your company’s greatest risks and how you’ll recover.
• Exactly how much business interruption coverage you’ll need to get through and recover from the snowstorm.

For small businesses, the average claim after a snowstorm is anywhere from $15,000 to $26,000 depending upon the disaster’s severity and resulting damage. How prepared is your company? To make sure you have the right policies with enough coverage, give Ion Insurance a call at 203.439.2815.