Seasonal Risk

Definition - What does Seasonal Risk mean?

A seasonal risk is a risk of loss that only applies during certain times of the year. It generally only affects businesses that only operate during certain times of the year, such as haunted houses, or ones that have peak times of production or income, such as toy manufacturers.

Insuranceopedia explains Seasonal Risk

Generally, the majority of businesses do not experience seasonal risks; however, businesses that do not operate all year round or cater to certain seasonal market demands may benefit from seasonal risk coverage. For example, ski resorts have a seasonal risk of not getting enough snowfall to be open for enough days in winter to remain financially stable. However, this risk would be irrelevant in summer when ski resorts are closed. Insurance can be purchased to cover seasonal risks.

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