For many small businesses, the weeks before Christmas are the busiest – and most important – trading period of the year. Shops fill their shelves, cafés take more bookings, salons manage packed appointment books and offices work around staff holidays and year-end deadlines.
It can be an exciting time. But higher sales often come with higher risks.
You may be holding more stock than usual, keeping larger amounts of cash on the premises and welcoming more people through the door. Temporary staff might be helping with the extra demand, while deliveries arrive throughout the day and are sometimes left waiting in storage areas.
So before the festive rush begins, it is worth reviewing your shop insurance, office insurance or wider commercial insurance. A few simple checks now could help avoid an unwelcome surprise later.
Check your stock
Christmas stock can quickly change the value of everything kept at your premises.
A gift shop might be holding extra candles, decorations and hampers. A café may have more food, drink and specialist equipment than normal. A salon could be carrying additional beauty products, electrical items and gift sets. Even an office may have higher-value equipment temporarily stored on site.
Look at your policy’s stock or contents sum insured and ask yourself whether it reflects the highest amount you expect to hold – not the average amount during a quieter month.
It is also important to consider stock:
- In the shop, office, salon or café
- In storerooms, garages or other parts of the premises
- In temporary storage areas
- Awaiting collection or delivery
- In transit between suppliers and your business
- Held at a Christmas market, pop-up or other temporary location
Some policies include a seasonal stock increase or peak-period extension. Others may have a specific limit, a time restriction or conditions you need to meet. It seems a small detail, but the difference between “covered” and “covered up to a particular amount” can matter when stock levels rise.
Ask about extensions
A standard commercial policy may not automatically provide everything you need during a seasonal trading peak.
Check whether your policy includes a suitable seasonal increase for stock. If not, speak to your insurer or broker before you begin building up inventory. You may need to arrange a temporary extension or adjust the sum insured for a defined period.
This is particularly relevant if you:
- Buy more expensive stock than usual
- Store goods in a separate location
- Receive large deliveries shortly before Christmas
- Sell at markets or events away from your usual premises
- Keep stock overnight in a vehicle or external storage area
- Offer gift vouchers, hampers or made-to-order products
Do not assume that a supplier’s delivery insurance covers your business once goods have been delivered. And if a courier leaves cartons in a shared entrance, yard or unsecured area, check who is responsible for them and when your cover begins.
Keeping delivery areas tidy and secure is sensible for more than one reason. It can reduce the chance of theft, protect stock from damage and make it easier for staff to move safely around the premises.
Review your cash limits
Busy tills can mean more money on the premises. Even if most customers pay by card, cash may still build up during the day – especially in shops, cafés, salons and businesses attending festive events.
Look at the money section of your policy and check the limits for:
- Cash in tills during opening hours
- Cash kept on the premises outside opening hours
- Money stored in a safe
- Cash being taken to the bank
- Money in transit between business locations or events
The limits may be different for each situation. A policy might cover a certain amount in a locked safe but a lower amount in an unattended till. There may also be conditions about the type of safe, alarm, key control or banking arrangements.
It is worth reviewing your procedures too. Bank takings regularly, avoid leaving unnecessary cash in tills overnight and make sure temporary staff understand how cash should be handled. A festive queue is not the best time to discover that everybody has a different idea of who is responsible for the day’s takings.
Consider customer footfall
Christmas often brings more customers, longer queues and less space between people, displays and stock.
That can increase the chance of accidental damage or an injury on the premises. Wet coats and umbrellas can create slippery floors. Boxes may be left in walkways. Decorations, cables and temporary displays can introduce new trip hazards.
Public liability cover may help if a customer is injured or their property is damaged in connection with your business, subject to the policy terms and conditions. But insurance works best alongside sensible risk management.
Before trading becomes busy, check that:
- Walkways and fire exits remain clear
- Christmas trees and displays are stable
- Cables are secured and do not cross customer routes
- Wet floors are dealt with promptly
- Stock is not stacked where it could fall
- External paths and entrances are kept reasonably safe
- Staff know how to report accidents and near misses
If you run a café or restaurant, remember that festive menus and higher bookings can create additional practical risks. Test equipment before the busy period, keep food preparation areas organised and make sure any booking or cancellation terms are explained clearly to customers.
Protect your team
Many small businesses take on temporary, seasonal or part-time staff before Christmas. This can make a huge difference when the shop floor is busy or the office is preparing for year-end work.
It also means you should check your employers’ liability arrangements.
Most employers are legally required to hold employers’ liability insurance, and temporary or seasonal workers may need to be included. The exact position can depend on how the person works for you, so it is important not to assume that a casual arrangement automatically sits outside your policy.
Tell your insurer or broker if your staffing levels, payroll or business activities are changing. Check whether your policy covers the people you are bringing in and whether any conditions apply.
Good preparation matters too. Give new staff a basic induction covering:
- Manual handling
- Ladders and stockroom safety
- Cash procedures
- Customer accidents
- Fire and evacuation arrangements
- Working alone or opening and closing
- How to report damage, incidents and near misses
Nobody expects a temporary worker to know every corner of your business on their first morning. A short, clear briefing can prevent confusion later.
Look at accidental damage
Festive trading can bring more activity in areas that are normally quiet.
A customer may knock over a display. A delivery trolley may damage a door. A temporary worker may accidentally spill something on equipment. In an office, extra visitors or rearranged furniture could create a risk to computers, fixtures or other contents.
Depending on your policy, accidental damage may be included, excluded or available as an optional section. Check what applies to your buildings, contents, stock, glass, equipment and business premises.
This is also a good time to consider whether you have made any physical changes. Have you added a temporary counter, installed extra display equipment or altered how part of the premises is used? If so, tell your insurer where appropriate. A quick conversation is usually easier than trying to explain an unreported change after an incident.
Secure higher stock levels
More stock can make a premises a more attractive target for theft. It can also make it harder to notice when something is missing.
Keep deliveries secure, limit access to stockrooms and record goods as they arrive. If cartons need to remain on site overnight, use a suitable locked area rather than leaving them in a reception area, shared corridor or vehicle.
Check your policy’s security requirements, including locks, alarms, shutters, lighting and keyholder arrangements. There may be conditions about how stock must be stored or how the premises should be secured outside business hours.
If you operate from an office, do not overlook equipment and confidential paperwork. Christmas parties, reduced staffing and office closures can change the usual security routine. Make sure someone knows who is responsible for locking up, setting alarms and checking the premises.
Remember the quieter months
Reviewing your cover is not only about preparing for Christmas. It is also about what happens afterwards.
Once the seasonal rush ends, your stock levels may fall again. You might reduce opening hours, close for a short break or stop using temporary storage. If your business circumstances change, tell your insurer and check whether the policy still accurately reflects the way you operate.
Avoid reducing cover too quickly, though. Returned goods, unsold seasonal stock and outstanding deliveries may still be on your premises well into January. Keep appropriate protection in place until the higher-risk period has genuinely passed.
It is also worth keeping records of your stock, equipment and cash procedures. Photographs, invoices and inventory records can be useful if you need to demonstrate what was held or how an incident occurred.
A final festive check
Before Christmas trading begins, set aside a little time to review:
- Your maximum stock value and stock locations
- Seasonal limits or peak-period extensions
- Cash on the premises and in transit
- Public liability and accidental damage cover
- Employers’ liability for temporary and seasonal workers
- Security arrangements for deliveries and overnight storage
- Any changes to your premises, staff or business activities
- What needs to be updated after the busy period
T&R Direct can help you explore suitable shop insurance, office insurance and wider commercial insurance options. We can discuss your premises, trade, stock levels and seasonal plans, then source competitive quotes from a panel of leading UK insurers.
Christmas trading should be about serving customers – not discovering that your policy was based on an ordinary Tuesday in March. A timely review can help your cover keep pace with your business when it matters most.
About The Author: Penny
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