Winter weather can do more than disrupt a workday. For businesses in Springfield, Urbana and surrounding Ohio communities, a burst pipe, snow-damaged roof, icy parking lot or extended power outage can result in expensive repairs, lost revenue and potential liability claims. Preparing for winter means more than maintaining buildings and keeping walkways clear. It also means understanding what your business insurance covers – and where gaps may exist.
The financial impact can be substantial. According to the Insurance Information Institute, winter storms caused nearly $1.4 billion in insured losses in the United States in 2025, including losses related to snow, ice, freezing and flooding.
Commercial insurance can help protect your business from many of the financial consequences of winter weather, but coverage depends on your specific policy, the cause of the damage and any applicable exclusions or conditions.
Before temperatures drop, here are several areas of coverage worth reviewing.
Commercial Property Insurance: Protecting Buildings, Equipment and Inventory
Winter weather can put significant stress on commercial buildings and the property inside them. Frozen pipes, burst sprinkler systems, roof damage from heavy snow and other weather-related incidents can result in costly repairs and damaged business assets.
Water and freezing damage accounted for 20% of the most common small business insurance claims as reported in Insurance Journal based on The Hartford's analysis of more than one million small-business policies and claims from 2020 to 2024.
Commercial property insurance generally protects physical business assets, including buildings, equipment, furniture, inventory and supplies, against covered causes of loss.
However, not every type of winter damage is automatically covered.
Frozen pipes and water damage: A burst pipe can cause extensive damage to walls, flooring, equipment and inventory. Coverage may depend on how the damage occurred and whether the business took reasonable steps to maintain heat and protect the property. Some policies include conditions requiring owners to maintain heat or shut off and drain water systems when a building is vacant.
Snow and ice damage: Heavy snow, ice accumulation and freezing rain can damage roofs, gutters, HVAC systems and other structures. Whether repairs are covered depends on the policy's covered causes of loss, exclusions and applicable limits.
Power outages and equipment damage: Extended outages can affect heating systems, refrigeration, security systems and other essential equipment. Don't assume a standard commercial property policy covers every loss resulting from a power interruption. Additional coverage or endorsements may be necessary.
Business owners should review their commercial property coverage to confirm that buildings, equipment and inventory are insured at appropriate values and that any special coverage requirements are understood.
Business Interruption Insurance: What Happens When You Can't Operate?
Even when physical damage is covered, the financial impact of a winter storm can extend well beyond the repair bill.
If a fire, burst pipe or other covered event forces your business to temporarily close, business interruption insurance (also called business income coverage) may help replace lost income and cover certain ongoing operating expenses while repairs are underway.
Depending on the policy, covered expenses may include:
Lost business income during the covered shutdown.
Payroll and employee expenses.
Rent, utilities and other continuing operating costs.
Additional expenses associated with temporarily relocating or maintaining operations elsewhere.
There are important limitations to understand. Business interruption coverage generally requires a covered cause of physical property damage that results in an interruption of operations. A weather-related closure alone does not necessarily trigger coverage. Policies may also include a waiting period, coverage limits and a defined period of restoration.
For example, if a frozen pipe causes significant damage to a manufacturing facility and forces operations to stop while repairs are completed, business interruption coverage may help offset lost income and continuing expenses, subject to the policy terms.
Business owners should also consider how long it would realistically take to resume operations following a major loss. A few days of downtime may be manageable, but several weeks or months could create a much greater financial strain.
General Liability Insurance: Protecting Against Winter Slip-and-Fall Claims
Snow and ice create additional liability risks for businesses, particularly those with customer-facing locations, parking lots, sidewalks and other frequently traveled areas.
If a customer or vendor slips and falls on your property and alleges that the business was negligent in maintaining safe conditions, a commercial general liability policy may help cover eligible medical expenses, legal defense costs and settlements or judgments, subject to the policy.
Coverage does not eliminate the importance of prevention. Business owners should establish procedures for:
Clearing snow and ice from sidewalks, entrances and parking areas.
Applying salt or other appropriate ice treatments.
Inspecting walkways throughout the day, particularly during freezing and thawing conditions.
Placing warning signs near wet floors and potentially hazardous areas.
Documenting snow removal, inspections and maintenance activities.
Consistent maintenance and documentation can help reduce the likelihood of an accident and demonstrate that reasonable precautions were taken.
Commercial Auto Insurance: Protecting Business Vehicles in Winter
Winter driving conditions can increase the likelihood of accidents involving company-owned vehicles, delivery trucks, service vehicles and employees traveling for work.
Commercial auto insurance can help protect your business when a covered vehicle is involved in an accident. Depending on the policy, coverage may include liability, collision and comprehensive protection.
Collision coverage generally applies to covered damage resulting from an accident, while comprehensive coverage may apply to certain non-collision losses, including damage caused by falling objects or other covered weather-related events.
Business owners should review their policies to confirm that all company vehicles are properly insured and that employees using personal vehicles for business purposes have appropriate coverage in place.
Winter preparation should also include vehicle maintenance, tire inspections, emergency supplies and reminders about safe driving in snow and ice.
Flooding, Power Outages and Other Coverage Gaps
One of the most important parts of a winter insurance review is identifying risks that may not be covered by a standard commercial policy.
For example, flood damage is generally excluded from standard commercial property insurance and may require a separate flood insurance policy. Similarly, losses resulting from an off-premises power outage, including spoiled refrigerated inventory, may require specific coverage or an endorsement.
Other areas worth reviewing include:
Equipment breakdown: Coverage for certain mechanical or electrical failures involving essential business equipment.
Spoilage coverage: Protection for perishable inventory lost because of a covered refrigeration or equipment failure.
Extra expense coverage: Help with certain additional costs incurred to keep operations running following a covered loss.
Utility services interruption: Coverage that may address certain losses resulting from interruptions to covered utility services, subject to specific policy terms.
These exposures can be particularly important for manufacturers, restaurants, grocery stores, healthcare facilities and other businesses that rely on specialized equipment or uninterrupted operations.
Review Your Business Insurance Before Winter Arrives
The best time to identify a coverage gap is before you need to file a claim. An annual insurance review can help ensure your policies reflect your current operations, property values and potential exposures.
Before winter sets in, consider asking your insurance agent:
Are our buildings, equipment and inventory insured at current replacement values?
What conditions apply to coverage for frozen pipes and water damage?
Do we have sufficient business interruption coverage to manage an extended closure?
Are flood damage and off-premises power interruptions covered?
Do we have adequate general liability limits for potential customer or visitor injuries?
Are all company vehicles and employees driving for business purposes properly covered?
Are there exclusions, deductibles or policy conditions we should understand before a loss occurs?
It's also worth reviewing any changes to your business over the past year. New equipment, additional inventory, expanded operations, new locations or changes in staffing can all affect your insurance needs.
For business owners, an insurance review is an opportunity to discuss property exposures, seasonal risks and any changes that could affect coverage.
Protect Your Business This Winter with Wallace & Turner
Winter weather is unpredictable, but your approach to protecting your business doesn't have to be. Understanding your insurance coverage, addressing potential gaps and taking preventive measures can help reduce the financial impact of unexpected weather-related losses.
Whether you operate a manufacturing facility, retail business, professional office or agricultural operation, our team can help you review your commercial insurance and prepare for the season ahead.
Don't wait until a winter storm exposes a coverage gap. Contact Wallace & Turner to schedule a commercial insurance review and make sure your business is prepared for whatever the season brings.
About Wallace & Turner Insurance
Wallace & Turner has been a trusted local insurance partner for families and businesses throughout Ohio for over 150 years. As an independent insurance agency with offices in Springfield and Urbana, our team of licensed professionals combines local knowledge with partnerships among top-rated regional and national carriers to deliver customized, budget-friendly personal, commercial, and life and health coverage. We are proud members of the Ohio Insurance Agents Association (OIA) and are dedicated to helping our neighbors manage risk and protect what matters most.
Disclaimer: This article is provided for general informational and educational purposes only. It does not constitute professional legal, financial, or insurance advice, nor does it amend, modify, or supplement any insurance policy terms, conditions, or exclusions. Coverage varies by carrier, location, and individual policy details. For specific coverage questions, please contact a licensed agent at Wallace & Turner Insurance.