Holiday-Related Claims Covered by Commercial Insurance
The holiday season can bring increased foot traffic, higher sales, festive decorations, and additional risks for businesses. Commercial insurance plays a critical role in protecting companies from seasonal mishaps that could lead to costly losses. Here are the most common holiday-related claims and how insurance typically responds.
1. Property Damage from Decorations and Electrical Issues
Holiday lights, extension cords, and displays can overload circuits or spark fires. If a fire or electrical malfunction damages your building or inventory, commercial property insurance generally covers:
- Fire damage to the building
- Destroyed products, equipment, or furnishings
- Smoke damage to the premises
However, insurers may deny claims caused by improper wiring or failure to follow safety codes. Document your safety practices during the season.
2. Theft of Seasonal Inventory or Holiday Merchandise
The holidays bring increased retail activity—and more opportunities for theft. Commercial policies typically cover:
- Burglary or break-ins
- Shoplifting losses (if you add crime or employee theft coverage)
- Employee theft or fraud (employee dishonesty coverage)
Businesses holding special holiday inventory—like decorations, electronics, or high-value gift items—may need to temporarily increase their coverage limits.
3. Slip-and-Fall Injuries from Wet Floors or Crowded Stores
Foot traffic surges during the holidays, which raises the risk of customer injuries. General liability insurance covers:
- Customer slip-and-fall accidents
- Injuries related to tripping over decorations or displays
- Medical bills and potential lawsuits
If you host holiday events, ensure aisles are clear, floors remain dry, and décor is safely secured.
4. Weather-Related Property Damage
Winter weather—like freezing temperatures, ice storms, or wind—can damage your business. Commercial property insurance often covers:
- Frozen or burst pipes
- Roof damage from ice accumulation
- Wind-driven rain damage
- Ice-related structural damage
Flooding, however, requires separate flood insurance.
5. Business Interruption During Holiday Peaks
If a covered event—such as a fire or burst pipe—forces you to temporarily close, business interruption insurance helps replace:
- Lost income
- Payroll
- Ongoing operating expenses
This coverage is especially valuable during December, when many businesses experience their highest sales volume.
6. Delivery or Supply Chain Issues for Seasonal Products
For businesses reliant on holiday shipments, inland marine or cargo insurance may cover damaged or lost goods in transit. This protects your investment in seasonal inventory before it arrives on your shelves.
