Seasonal Business Insurance: 101
Seasonal businesses do very well financially during the season, but they also tend to have greater financial risks than those that are open year-round. Because of this, it is essential that you get seasonal business insurance. It prevents you from paying for business insurance for the months when you don’t need it, but then you have the vital insurance policy during the season you are providing products or services.
What is Seasonal Business Insurance?
Seasonal business insurance is a type of business insurance that you only pay for when your business has its open season. This is dependent on your type of business, whether you own a fireworks shop for Independence Day in July, a Halloween shop in October, or a Christmas tree lot open in November and December. Your seasonal business can be covered with insurance policies similar to other businesses, but the policy is only covering you when you are paying for it, which is only part of the year.
Benefits of Seasonal Business Insurance
There are a variety of benefits to getting seasonal business insurance. The first benefit is that you are covered when you are in business. Because financial risks are extensive with a part-time business, every little event that could occur is even more damaging to your business income. This way, you still have that important insurance coverage. Another benefit is that you only have to pay for the policy during the season you need to be covered, thus saving you money by not being covered the rest of the year.
Types of Insurance Policies
Insurance policies within seasonal business insurance includes the same basic policies as you get with other business insurance. You get access to general liability, workers’ compensation, property insurance, professional liability, crime and cyber crime insurance, and many others. It can also cover loss of income when your business season is less than you normally do, which can negatively affect your income for the entire year.
Reasons to Get Seasonal Business Insurance
If you have a business only open part of the year, like a surf shop open in the summer or ski shop in the winter, you need to have business insurance, but not necessarily be covered all year. These are types of businesses may do incredibly well and operate during part of the year, but not necessarily year-round. There also may be certain years where you incurred an overall loss due to unforeseen events, like a devastating storm, which was out of your control.
Seasonal business insurance allows you to get the necessary coverage you need for your expected risks and maintain your business income year-round.