Seasonal businesses present challenges when it comes to running and insuring the business. They usually have different needs since their periods of operation are increasingly defined, and peak months may get very busy. This article examines seasonal insurance to see if it’s the best option for your business.
When Should You Opt for Seasonal Insurance?
Every company must have insurance, but what if your firm is only open for part of the year? Businesses that are only open for a few weeks or months of the year may benefit from seasonal business insurance. Businesses like Christmas tree farms, ski resorts, tour operators, etc., typically benefit from this insurance.
However, only some business owners should get seasonal business insurance, and only some industries are a good fit. Typically, the best candidates for seasonal business insurance are the people who:
- Only operate during certain seasons of the year;
- Generate the majority of their revenue at certain times of the year
- Depend heavily on the weather for much of their business (such as ski resorts);
When Can Seasonal Insurance Protect You?
Unexpected Loss: If your seasonal business experiences damage due to weather, theft, or a national disaster soon after it opens, you can be closed for an undetermined period while repairs are made. Some insurance plans may provide income replacement for business closures brought on by covered losses like these.
Losses due to an underwhelming season: A seasonal business insurance policy safeguards you against an unexpected slow season and makes up the difference in sales, enabling your store to remain open, especially if your primary source of income is based on specific seasons of the year.
Can I Put My Normal Insurance On Hold and Only Use It When Necessary?
Customers cannot typically pause their policies and resume them later with commercial insurance providers. The only option is to cancel your policy and buy a new one when you need coverage. However, this is not advised since it may harm your company, where insurance companies view a gap in coverage negatively.
Is Seasonal Insurance Then Justified?
Seasonal business insurance makes sense for some companies. It implies that you are exempt from paying for coverage when your company is shut down or generates less revenue. However, it will result in coverage gaps, leaving your company open to risks.
It is always recommended that you look at year-round coverage. Long-term costs for choosing continuous business insurance coverage are often lower monthly. Additionally, your firm is always covered against third-party claims, and it won’t impair your ability to maintain business permits that call for insurance.
Stay Protected in All Seasons with Action Insurance
We have a policy for you if you are a small business owner that depends on a successful season to get you through the rest of the year or if you run a business that only works during specific seasons of the year! Contact the agents at Action Insurance for a quote that is affordable and protects your business so that you do not have to worry!
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