What's Haunting Your Business This Fall? Understanding Seasonal Liability Risks

As the holiday season approaches, many businesses prepare for increased foot traffic, seasonal staff, special events, and higher sales volumes. While these opportunities can boost revenue, they can also increase liability exposures that may result in costly claims.

Before the holiday rush begins, now is the ideal time to review your insurance coverage and identify potential gaps. A proactive insurance review can help ensure your business is prepared for the demands of the season.

Beware of the Holiday Foot Traffic Fright

For many businesses, the holiday season brings increased customer traffic. More customers often mean a greater likelihood of slip-and-fall accidents, property damage, and other incidents that could result in liability claims.

Consider common seasonal hazards such as:

Wet entryways caused by rain or winter weather.
Crowded aisles and displays.
Parking lot accidents.
Decorations, extension cords, or temporary fixtures that create trip hazards.

General liability insurance can help protect your business if a customer is injured on your premises or if your operations cause damage to someone else’s property. However, it’s important to review your policy limits and ensure they remain adequate for increased seasonal activity.

The Temporary Employee Trap

Many businesses hire seasonal workers to keep up with holiday demand. While temporary employees can provide much-needed support, they can also create additional exposures if they are not properly trained.

New employees may be more likely to:

Operate equipment improperly.
Miss established safety procedures.
Cause accidental property damage.
Experience workplace injuries.

Business owners should ensure workers are properly trained and understand workplace safety expectations. In addition, reviewing workers’ compensation coverage is essential to confirm adequate protection for your workforce throughout the season.

Special Events and Extra Coverage Needs

Fall festivals, holiday promotions, customer appreciation events, and community gatherings can attract new customers and strengthen relationships. However, they can also introduce liability exposures that don't exist during day-to-day operations.

If your business is hosting a special event, consider questions such as:

Will attendance be significantly higher than usual?
Are vendors or third parties participating?
Will alcohol be served?
Are temporary structures or equipment being used?

Depending on the event, additional coverage options or endorsements may be necessary. Discussing planned events with your insurance advisor before they occur can help ensure you’re prepared if something unexpected happens.

Cyber Threats Can Be the Scariest Risk of All

While physical hazards often receive the most attention, cyber risks also tend to increase during busy shopping seasons. Higher transaction volumes and distracted employees can create opportunities for cybercriminals.

Potential threats include:

Phishing emails targeting staff.
Payment card breaches.
Ransomware attacks.
Data theft involving customer information.

Cyber liability insurance may help businesses respond to data breaches and manage recovery expenses, legal costs, and notification requirements. As online transactions increase, reviewing your cyber protections can be just as important as evaluating your physical risks.

Conduct an Insurance Checkup Before the Holiday Rush

An insurance review can help identify coverage gaps before they become costly surprises. Depending on your operations and holiday plans, you may need to increase policy limits or add endorsements to address seasonal exposures.

Consider reviewing:

General liability coverage.
Workers' compensation insurance.
Cyber liability protection.
Commercial property insurance.
Special event coverage.
Umbrella liability coverage.

Business needs can change significantly throughout the year. What was sufficient coverage last season may not adequately protect your business today.

Don’t Let Hidden Risks Spoil the Season

As business activity ramps up this fall, so can your exposure to liability claims. Reviewing your insurance coverage now can help ensure your business is prepared for the busy season ahead.

Talk with your insurance advisor to determine whether your current coverage aligns with your business needs.

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Kevin Witcher

Kevin Witcher joined SWBC in 2022. He serves as Chief Executive Officer of SWBC Insurance Services. In this role, he is responsible for all operational, business development, and sales activities for the division. Kevin is a seasoned insurance professional with over 34 years of experience. He began his career with Chubb in 1989 after graduating from The University of Texas at Austin. He focused on professional liability for the first 15 years of his career, and he has deep expertise in Directors and Officers liability, crime insurance, fiduciary liability, cyber liability, and employment practices coverages. Kevin served as a Regional Financial Lines Manager overseeing Texas and Oklahoma before moving into a marketing role that included all property and casualty products, as well as personal lines. He then served as Vice President and Branch Manager for Chubb’s Austin Branch, which included Austin, San Antonio, and the western side of Texas. Kevin has served on numerous nonprofit boards, including holding the role of treasurer and board chair for AIDS Services of Austin, as well as the Executive Committee and Board Trustee for Zach Scott Theatre.