Summer weather: insurance considerations for businesses

Summer weather can present a range of challenges for businesses. While warmer temperatures are often associated with the season, the UK can also experience periods of intense rainfall, thunderstorms, localised flooding and prolonged hot weather, sometimes with little warning.

These conditions have the potential to disrupt business operations, damage premises, equipment or stock, and interrupt day-to-day activities.

While the specific risks will vary depending on the location, nature and use of a property, reviewing maintenance arrangements and business continuity plans ahead of severe weather may help businesses respond more effectively if conditions change.

 

Heavy rainfall and flash flooding

Summer storms can produce intense rainfall over a short period of time. In some cases, drainage systems may become overwhelmed, leading to surface water flooding. This can occur in areas not traditionally considered to have a high flood risk.

Although not every business will be affected, understanding how your premises could be impacted by heavy rainfall may help when planning for severe weather.

 

Reviewing your premises

Routine property maintenance may help identify issues that could contribute to weather-related damage during periods of heavy rain. Businesses may wish to consider:

• inspecting gutters, drains and downpipes to check that water can flow freely


• keeping external drainage channels clear of leaves, debris and vegetation


• checking roofs, windows and doors for maintenance issues that could allow water ingress


• where appropriate, storing stock above floor level to help reduce the risk of water damage. Policy conditions may specify a minimum height.

Some insurance policies may include conditions relating to the storage of stock, so reviewing your policy documentation can be helpful.

 

Hot weather considerations

High temperatures may also increase fire risks in some environments. Depending on the nature of the premises, businesses may wish to:

• remove dry vegetation and other combustible materials from around buildings


• store flammable materials in accordance with relevant safety requirements and manufacturer guidance


• ensure designated external smoking areas are kept clear of combustible materials with suitable receptacles provided for cigarette ends.

Businesses with external yards, loading areas or vehicle fleets may also find it helpful to inspect external surfaces for signs of heat-related deterioration. In doing so, consider whether equipment, vehicles, or temperature-sensitive stock would benefit from additional protection from direct sunlight, where appropriate.

Where access cannot be carried out safely, inspections and maintenance should be undertaken by a suitably qualified contractor.

 

Supporting employees

Businesses whose employees undertake outdoor or physically demanding work may also wish to review their arrangements for periods of prolonged hot weather. Depending on the nature of the work and any relevant health and safety requirements, this may include reviewing existing heat-related risk assessments, ensuring drinking water and shaded rest areas are available where appropriate.

This may also include temporary adjustments to working practices during periods of extreme heat and appropriate supervision for employees carrying out physically demanding work outdoors.

 

Preparing for unexpected disruption

Many organisations have business continuity arrangements in place. As part of these, it may be helpful to review whether information needed following a weather-related incident is readily available. Examples could include:

• maintaining an up-to-date record of business assets and equipment


• taking photographs of premises, fixtures and significant assets as part of normal record keeping


• retaining maintenance records for the property


• ensuring important business records are securely backed up.

If your premises are affected

If flooding or another severe weather event affects your premises, personal safety should always take priority. Where it is safe to do so, businesses may wish to consider:

• moving equipment or important items away from affected areas where practical


• taking photographs or videos of any damage before clean-up work begins


• retaining damaged items where possible until insurers or loss adjusters have had an opportunity to inspect them


• keeping receipts for emergency expenditure and temporary repairs

Contact your insurance broker or insurer immediately to discuss the next steps. The appropriate claims process will depend on the circumstances, the terms of the relevant insurance policy and the insurer.

 

Planning ahead for summer weather

Weather conditions can change quickly during the summer months. While it is not possible to prevent every incident, reviewing property maintenance, business continuity arrangements and emergency procedures before severe weather occurs may help reduce disruption if your business is affected.

Businesses with larger premises, multiple locations or operations that depend on outdoor working may also wish to consider whether their existing contingency plans remain appropriate for seasonal weather risks.

 

How Fidentia can help

Every business has different risks, property arrangements and insurance requirements. If you have questions about your insurance arrangements, you may wish to speak to your insurance broker or insurer.

If you would like to discuss the considerations outlined in this article with Fidentia, our claims and commercial insurance teams would also be pleased to assist.

Contact: Fidentia Insurance Brokers Limited. Tel: +44 (0) 20 3150 0080 or email: info@fidentiains.com 

This article is provided for general information only and does not constitute advice or a recommendation. The suitability, availability and operation of insurance cover will depend on individual circumstances, policy terms, conditions and insurer acceptance. Nothing in this article should be interpreted as indicating how an insurer may assess, underwrite or settle any claim. Businesses should review their own circumstances and seek appropriate professional advice where required.