Seasonal Risk

What Does Seasonal Risk Mean?

A seasonal risk is a risk of loss that occurs only during specific times of the year. It typically affects businesses that operate seasonally, such as haunted houses, or those with peak production or income periods, like toy manufacturers.

Insuranceopedia Explains Seasonal Risk

Most businesses do not face seasonal risks; however, businesses that do not operate year-round or cater to specific seasonal market demands may benefit from seasonal risk coverage. For example, ski resorts face the seasonal risk of insufficient snowfall, which could prevent them from operating enough days in the winter to remain financially stable. However, this risk is irrelevant during the summer when the resort is closed. Operators in this position usually buy coverage through a business owner’s policy or a tailored commercial package, which can include business interruption coverage triggered by a covered peril during the active season. Premiums for these policies vary widely based on payroll, location, and how much revenue depends on a short window, so it helps to look at typical small business insurance costs before getting quotes. Insurance can be purchased to cover such seasonal risks.