What to Consider During Your Christmas Shut-Down Period

The holiday season is a time for rest, reflection, and recharging. For many businesses, the Christmas period also means a temporary shutdown—whether it’s a few days or several weeks. While it’s great to take a well-deserved break, it’s important to remember that shutting down your operations comes with certain risks that could impact your business in the new year.

As a business insurance broker, we’ve helped countless businesses navigate the holiday season safely and smoothly. Here’s a checklist of key things to consider during your Christmas shut-down period to ensure your business is well-protected while you’re away.

Review Your Property Security

With many businesses closing over the holidays, it’s important to ensure your premises are secure:

• Locks and Alarms: Double-check that all doors, windows, and entry points are securely locked. Make sure your alarm system is fully functional, and consider setting up motion sensor lights or cameras for additional protection.
• Security Services: If you don’t already have a security service, consider arranging for regular patrols during the shutdown period or hiring a temporary security guard, especially if you’re leaving valuable equipment or inventory on-site.
• Fire Hazards: If possible, unplug any non-essential electrical equipment to reduce the risk of fire. Be sure to also check for any potential fire hazards like space heaters or faulty wiring.

Inventory Protection

For businesses with physical goods or inventory on-site, the Christmas shutdown period can bring increased risks—especially with the potential for theft or damage:

• Secure Storage: If possible, move valuable or fragile inventory to a more secure location, or store it in a locked room.
• Insurance Coverage: Check that your property insurance covers any potential losses during the shutdown period, including theft, fire, or other damages. If you’re unsure, now is a great time to talk with your insurance broker about reviewing your coverage.

Employee Considerations and Workers’ Compensation

Even if you’re closed for business, it’s important to keep your employees in mind during the holiday break:

• Employee Contact: Make sure key staff members have contact details for emergency situations, such as a plumbing issue or a break-in. It’s a good idea to assign one or two trusted employees to handle urgent matters while the business is closed.
• Workers’ Compensation: While your business is closed, ensure that your workers’ compensation insurance is still active and covers any potential accidents that may occur on-site during the shutdown. Accidents can happen at any time, even when the business is closed, so make sure you’re protected.

Cybersecurity During the Break

If your business operates online or relies on digital tools and data, don’t overlook your cybersecurity during the holiday shutdown:

• Password Protection: Ensure that all critical accounts, systems, and devices are password-protected and that your security protocols are up to date.
• Backup Data: Perform a full backup of important business data and files before you leave. In the event of a cyberattack, a backup ensures you can recover any lost or compromised data quickly.
• VPN & Remote Access: If you allow employees to work remotely or access your systems from home, make sure your virtual private network (VPN) is secure and that all remote access is properly monitored.
• Cyber Insurance: while your business is closed, ensure your cyber insurance is still active and covers any potential security breeches.

Business Interruption Coverage

While you may be on break, the possibility of an unexpected event (such as a fire or flood) could cause a business interruption. Now is a great time to review your business interruption coverage and make sure it’s sufficient to cover any potential losses if you’re forced to close for an extended period.

• Review Your Coverage: Confirm that your business interruption policy covers the extended period your business will be closed. Make sure the coverage includes lost income, operational expenses, and any additional costs associated with reopening.
• Disaster Planning: If your business operates in an area prone to winter storms or other natural disasters, review your contingency plans and ensure you’re prepared to handle any emergencies that might arise.

Temporary Staff or Contractors

If you hire seasonal or temporary workers during the Christmas period, make sure they are properly covered by your business’s insurance:

• Workers’ Compensation: Check that your workers’ compensation policy covers temporary or seasonal workers. If you’re hiring temporary staff, it’s essential to include them under your insurance policy to avoid any gaps in coverage.
• Liability Coverage: Ensure your general liability insurance is up to date, especially if you’ll be working with temporary staff or contractors. The last thing you want is an accident or mistake during the holiday season that leads to an uninsured claim.

Review Your Insurance Policies

The holiday season is a great time to review your current insurance policies and make sure they’re up to date for the coming year:

• Update Coverage: Take a look at your current insurance policies to ensure they reflect any changes to your business, such as increased stock levels, new equipment, or additional staff.
• Check for Gaps: It’s easy to overlook gaps in coverage as the business grows and evolves. Now is a good time to check for any coverage gaps that could leave your business vulnerable.

Communicate with Your Customers

Finally, ensure your customers know when your business will be closed over the holiday period. Clear communication helps manage expectations and minimizes frustration:

• Out-of-Office Messages: Set up automated email responses or voicemail messages to inform customers of your shut-down dates.
• Social Media & Website Updates: Update your website and social media pages with your holiday hours, ensuring your customers are aware of any changes.

Final Thoughts: Take a Moment to Plan for the Holidays

The Christmas shut-down period offers businesses an opportunity to rest, recharge, and reflect on the year. However, it’s also important to take a few moments to ensure that your business is secure and well-protected during this time. By following this checklist and reviewing your insurance coverage, you can leave your business in good hands while you enjoy a well-deserved break.

If you have any questions or need help reviewing your insurance before the holiday shutdown, feel free to reach out to us at [Your Company Name]. We’re here to make sure your business is protected all year long.

Happy Holidays! Stay Safe and Secure.