Here are three wintertime risk management tips for small business owners:
1. Deter threats to the physical workspace
The biggest risks typically are frozen pipes and flooding during winter months.
- Cost Helper, a website that aggregates statistics related to repairs and maintenance, states that a burst pipe can cost in excess of $3,800 if it is located in a wall or the building’s foundation, while subsequent water damage can run up to $70,000.
- The Federal Emergency Management Agency reports that about 40 percent of small businesses never reopen after a flood, as the average claim for one of these events is about $85,000.
Make sure pipes are insulated and carefully monitored, and that your building is protected against floods. As always, a flood insurance policy is critical to ensuring your business is covered should a major event take place this winter.