Common Heat-Related Commercial Claims in Texas
Texas businesses face increasing risks due to rising temperatures and prolonged heatwaves. Extreme heat doesn't just raise utility bills—it can damage property, disrupt operations, and even endanger employee safety. As a result, businesses in Texas are seeing more heat-related insurance claims, especially during summer months. Here are the most common types.
HVAC System Failures
One of the most frequent heat-related commercial claims involves HVAC system breakdowns. When air conditioning systems are pushed to the limit, they can fail—leading to uncomfortable or even dangerous working conditions. Businesses may file property claims for repairs or replacements. If a breakdown forces a business to close temporarily, business interruption coverage may also come into play, depending on the terms of the policy.
Spoiled Inventory and Product Loss
Heat can ruin temperature-sensitive inventory such as food, cosmetics, pharmaceuticals, and electronics. In retail, hospitality, and healthcare sectors, spoilage claims are common when refrigeration systems fail due to electrical overload or power outages. Businesses may submit claims under their equipment breakdown or property insurance policies for inventory loss caused by heat-related malfunctions.
Power Surge and Equipment Damage
Texas heatwaves often coincide with high electricity usage and power surges, which can damage commercial appliances, security systems, and point-of-sale equipment. Insurance claims in this category may fall under electrical surge coverage or equipment breakdown endorsements, but coverage depends on the policy structure. Not all policies automatically include this protection.
Structural and Roof Damage
Prolonged exposure to extreme heat can cause roofing materials to deteriorate, seals to crack, and exterior materials like vinyl siding to warp or discolor. While insurers often deny claims related to wear and tear, some businesses succeed in filing claims when heat causes sudden damage or accelerates failure of relatively new materials.
Employee Heat-Related Illness Claims
More and more workers' compensation claims are being made for heatstroke, dehydration, or heat fatigue in outside jobs like construction, gardening, and farming. Texas companies must make sure that their employees are safe at work. If they don't shield them from high heat, they could face expensive medical claims and lawsuits.
Conclusion
Texas is still breaking records for heat, and claims for commercial insurance linked to HVAC failure, spoiled inventory, power surges, and heat-related illness are on the rise. In a rising climate, businesses should routinely check their insurance policies, upgrade important systems, and put safety rules in place to keep their coverage and manage risk.