The Hidden Cost of Snowstorms for Small Businesses

Winter storms are expected, but the disruption they cause can still catch even the most prepared business owner off guard. A forecast can warn you about inches of snow, drops in temperature, and wind chills, but it can’t fully prepare you for power outages, equipment failures, hazardous roads, unexpected closures, injuries from slips and falls on ice, or a team struggling to safely complete their commutes.

For many small businesses, even a single winter storm can create a chain reaction of operational and financial challenges: downtime, damaged equipment, missed appointments, vehicle issues, and lost revenue. As weather becomes more unpredictable, those ripple effects often grow.

The Insurance Information Institute reports that insured losses from severe convective storms in 2023 alone exceeded $50 billion, showing how widespread and costly weather disruptions can be. With a well-planned commercial insurance strategy, small businesses can reduce financial strain and recover faster.

Common Winter Hazards and How They Affect Operations

Winter weather conditions that commonly lead to business disruptions include heavy snow, high winds, and ice accumulation. Even when taking steps to be prepared, such as clearing walkways, turning up the heat, and allowing extra commute time, many winter-related challenges emerge without warning. Typical impacts include:

• Lost productivity when roads close or employees cannot travel
• Equipment downtime due to freezing temperatures, moisture exposure, or power loss
• Property damage to roofs, signage, or onsite materials
• Vehicle issues, from accidents to dead batteries to difficult road conditions
• Increased heating, maintenance, and emergency repair costs
• Reduced customer traffic during already slow winter months
• Injuries from slips and falls on ice or roof damage from an ice dam

And small incidents can escalate quickly. A single broken sprinkler pipe, for example, can flood a workspace, destroy inventory, and halt operations for days.

The Financial Impact of Winter Storms on Small Businesses

Small businesses already operate with narrow margins. Every minute counts, and winter weather amplifies operational pressure. Studies consistently show that foot traffic and customer engagement often dip in colder months, meaning every hour of lost productivity matters. National data underscores this risk:

• The Federal Emergency Management Agency (FEMA) reports that 40% of small businesses never reopen after a disaster, and 25% fail within one year after a disaster.
• The National Oceanic and Atmospheric Administration (NOAA) recorded 27 U.S. weather/climate disasters exceeding $1 billion in losses each in 2024, including two major winter storm events.

Key Small Business Coverages That Help During Winter Storms

Insurance can’t prevent snowfall or freezing temperatures, but insurance for commercial property can play a decisive role in helping businesses forecast, manage, and recover from winter-related challenges. Below are key coverage options that support business resilience during the harshest months.

Commercial Property Insurance: Protect Your Physical Assets Year-Round

Winter storms can strain buildings, roofing, outdoor equipment, inventory, and signage. High winds and heavy snow create structural stress, while freezing temperatures can damage pipes, HVAC systems, and electrical components. Commercial property insurance can help cover:

• Roof and structural damage
• Broken windows or signage
• Frozen or burst pipes
• Inventory and equipment loss
• Damaged machinery or tools

For example, a retail shop discovers that a section of its roof collapsed from heavy snow buildup, damaging merchandise and forcing closure for repairs. With commercial property coverage, you can file a commercial property insurance claim to help pay for structural repairs and inventory replacement.

Business Interruption Insurance: Support When Operations Need to Pause

Damage is costly, but so is downtime. Business interruption insurance, also called business income insurance, helps pay for ongoing operating expenses when a covered event forces temporary closure. Covered costs may include:

• Payroll
• Rent or lease payments
• Utilities
• Temporary relocation

By helping bridge the financial gap when storms force unexpected closures, business interruption insurance can become essential.

For example, a small accounting firm temporarily closes when a winter storm knocks out power and heat across its office building during a critical filing period. Business interruption coverage could help cover payroll, maintain essential operations, and offset lost revenue from postponed client work.

Commercial Auto Insurance: Protection When Roads Are Dangerous

Snow, ice, and high winds increase the chance of vehicle accidents, especially for businesses that rely on transportation for deliveries, service calls, or equipment hauling. Commercial auto insurance may help cover:

• Property damage from accidents
• Injuries from crashes
• Liability for accidents involving employees on the road

For example, a contractor’s vehicle skids on ice and hits another vehicle, damaging equipment and injuring a driver. Commercial auto coverage can help manage the financial fallout.

Equipment Breakdown Insurance: When Cold Weather Impacts Machinery

Cold weather is tough on machinery. Motors seize, boilers malfunction, refrigeration systems fail, and electrical surges can damage critical components. Reviewing your commercial property policy to make sure equipment breakdown coverage is included can help prevent unexpected winter-related costs. Equipment breakdown insurance typically helps cover:

• Sudden mechanical failures
• Electrical problems
• Heating equipment or boiler failures
• Repairs or replacements

For example, a storm-related power outage at a small IT services firm causes damage to its servers and networking equipment. Equipment breakdown coverage helps repair the system and reduce long-term financial impact while repairs are underway.

Workers’ Compensation Insurance: Protecting Your Team

Winter conditions increase the risk of injuries, from slips on icy steps to strains caused by snow removal or cold-weather tasks. Workers’ compensation insurance can help protect your team and bottom line by providing coverage for:

• Medical expenses
• Lost wages
• Rehabilitation
• Employer liability

For example, a technician slips on an icy driveway while responding to a service call. Workers’ compensation coverage helps them receive the care they need and protects the business from additional liability.

General Liability Insurance: Safeguarding Your Visitors

Winter weather can also create hazards for customers, vendors, and anyone visiting your property. Slippery entryways and falling ice can lead to accidents that result in costly claims. General liability insurance helps protect your business by covering:

• Third-party bodily injury
• Property damage
• Legal defense costs
• Settlement or judgment expenses

For example, a customer slips on an icy sidewalk outside your storefront and suffers an injury. General liability coverage helps pay for medical costs and legal fees, reducing the financial burden on your business.

Preparing for the Next Storm Starts Now

Every small business is unique, with different risks, different vulnerabilities, and different winter challenges. Proactive planning and the right insurance strategy can significantly reduce long-term exposure. Working with a Westfield agent helps you:

• Understand your risk exposure
• Identify potential coverage gaps
• Tailor your policies to your needs
• Plan for “what if” scenarios before they happen

Winter storms will always be part of the season. But stress, uncertainty, and financial hardship don’t have to be. Talk to a Westfield agent to evaluate your winter weather exposure and create a plan that keeps you protected, supported, and ready for whatever the next storm brings.