Seasonal business insurance is insurance coverage for businesses that open for only part of the year. Typically, these businesses include summer camps, farmer's markets, surf instructors, and pool cleaners. These businesses, known as seasonal businesses, make most or all their money at certain times of the year.
While for certain businesses it might make sense to have seasonal business insurance, only paying for the months in business, stopping and starting can leave you exposed to gaps in coverage and can cost more than having all-year coverage, which is most often your best bet.
Who needs seasonal insurance coverage
Consider seasonal business insurance if you are a business that only operates for a few weeks or months during the year or as an additional layer of protection on top of your continuous policy during “busy season” as an added hedge against loss.
Here are some examples where seasonal business insurance makes sense.
- Special events – In the event that your event gets canceled, from concerts to fairs to expos and other one-off events, seasonal business insurance can reimburse you for paying for the venue space, refunding tickets, and lost income from the cancellation.
- Pop-Up shops: Pop-ups, or temporary spaces only open for a short time are another example of when you’d want seasonal insurance to cover losses related to inventory, equipment, and injury.
Also covered are unexpected event loss, say from weather damage, natural disaster, or theft that might force you to close for part or all of the season, as well as losses from a slower-than-anticipated busy season to offset the lack of expected revenue.
Short-term business insurance vs. year-round business insurance
All businesses are required to have business insurance; for many businesses, a year-round policy makes the most sense from a coverage and a cost standpoint. So, while seasonal business insurance isn’t right for all businesses, it absolutely makes sense as an additional layer of protection for some if you’re a business that only operates at a certain time of year (Christmas tree farm), sees big earnings during a specific time of year (‘tourist season”) or depends on the weather (ski resort) then seasonal business insurance might be right for you.
Ultimately, year-round coverage is the way to go for most businesses from a cost and coverage standpoint. Nationwide offers business interruption insurance in the event that you are forced to close shop for a time, providing peace of mind in every season.