A seasonal company lives in two modes: at peak, everything is spinning – stock, headcount, turnover – while in the off-season the site stands idle and reserves run down. The insurance question is different in each mode, but policies are typically sized for a single average state. That gap shows up at claim time.
- At peak, underinsurance is the danger: stock and headcount run above the level fixed in the policy.
- In the off-season, the risk of an unattended site and idle equipment grows – and the cover's conditions apply more strictly too.
- The solution is cover matched to the rhythm: peak-period values, a seasonal list for staff, and knowing the off-season rules.
Peak season: when everything is more
At peak, stock value can be several times the annual average – if the sum insured is set to the average, underinsurance kicks in with proportional reduction at exactly the worst time. There are two ways to handle this: sizing cover to the peak value, or periodic value declarations, where cover follows the wave – which pays off is decided by the quotes. On the headcount side, the question is the pool of seasonal workers: the list for accident and benefits cover should follow the real headcount – the details follow the logic of change notification.
Off-season: when everything stands still
An idle site isn't a dormant risk: frost damage to an unheated building, break-in exposure at an unattended location, and deterioration of idle machinery are all off-season territory. The policy terms can contain separate rules for this: a duty to notify for a periodically unused building, security requirements, water-draining instructions. It's worth reviewing these before closing the season – the on-site loss prevention checklist helps with this.
The downtime question – soberly
For a seasonal company, downtime risk is asymmetric: a single peak-season loss event can take out the backbone of the entire year's revenue. That makes the idea of business interruption cover tempting – but the same truth applies here: business interruption insurance does not replace lost profit, as many hope; following property damage, it typically covers ongoing fixed costs and a limited wage burden. For a season-dependent company, doing the sums matters especially – when, how large a loss, with what consequence: machinery breakdown and business interruption, and keeping the business running after a loss.
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