Navigating Heat-Related Risks: A Guide for Business Owners

As temperatures rise and heat waves become more frequent, businesses need to be proactive. Business owners should plan ahead to protect their assets, employees, and operations during extreme heat events, especially in summer.

We’re here to help you prepare! Follow these tips and strategies to help keep your employees safe, maintain your property and vehicles, and reduce your risk of a claim.

Heat Wave Preparedness for Businesses

Heat wave emergency preparedness is crucial for minimizing disruptions and safeguarding your business. Start by developing a comprehensive heat wave preparedness plan that includes:

Employee Safety Measures

Ensuring the safety of your employees during the hot summer months is paramount. Outdoor worker safety should be a priority, and implementing outdoor work safety tips can make a significant difference.

OSHA provides a detailed guide on employee safety guidelines for heat waves. It’s important to learn and understand these guidelines as an employer.

Educating employees on the signs of heat exhaustion and heat stroke is one important part of employer responsibility. These conditions can be life-threatening if not addressed promptly. Training on recognizing the signs of heat illness can help prevent a workplace accident related to extreme heat.

Working in the heat of the day can increase the risk of heat-related illness. On a hot day, consider adjusting work schedules to avoid peak heat hours, which are typically between 10 a.m. and 4 p.m.

Employees should be provided with water and cooling stations throughout the workplace. Encourage employees to take regular breaks in shaded or air-conditioned areas.

Example Scenario: A landscaping company schedules work shifts early in the morning to avoid the midday heat. They provide employees with cooling vests and ensure frequent breaks. Despite these precautions, an employee suffers from heat exhaustion. The company's workers’ compensation insurance could cover the medical expenses and lost wages during recovery.

Vehicle Safety and Fleet Maintenance

Hot weather can significantly affect commercial vehicles, leading to potential safety hazards. Regular fleet maintenance is essential to ensure vehicles are operating safely and efficiently. Review our car maintenance checklist for more items to review on a regular basis.

Check tire pressure frequently, as heat can cause tires to expand and potentially burst. Ensure proper fluid levels, including coolant and oil, to prevent overheating. Implement a routine inspection schedule to catch any heat-related issues early.

Avoid storing sensitive items in vehicles during extreme heat, as high temperatures can damage electronics and other materials. Be careful to keep flammable materials away from parked vehicles, such as gas cans.

Equip your fleet vehicles with emergency kits that include water, reflective gear, and cooling packs in case of breakdowns during heat waves.

Example Scenario: A wholesale plumbing supply employee experiences a vehicle breakdown because it overheats on a hot summer day, leading to a potential missed day of customer deliveries. If well insured, the business’s commercial auto insurance could cover roadside assistance to help the delivery driver get back on their scheduled route.

Property Inspections and Maintenance

Conducting regular property inspections is crucial to assess HVAC systems, roof age, and potential vulnerabilities to power outages. Schedule regular HVAC tune-ups to ensure efficient cooling and prevent system failures during peak heat.

Inspect roofs for signs of wear and tear, as extreme heat can exacerbate existing damage. Consider investing in backup power solutions, such as generators, to mitigate business interruptions caused by power outages. Evaluate your property for potential heat-related vulnerabilities and address them proactively.

Summer heat can also impact interior rooms. Make sure to adequately cool rooms with heat-creating equipment like IT servers and cooking equipment. Consider having back-up cooling options to cool these rooms if your HVAC fails during a heat wave.

Heat can increase the demand on your electrical systems, too. Have a licensed electrician evaluate whether your building’s electrical load can handle high summer demand. Be careful before using standalone or plug in air conditioners. Overloading your electrical plugs can cause a fire.

Make sure your fire suppression systems are inspected regularly and working well. This is especially important in areas where high heat can dry out materials or raise the risk of fire.

Example Scenario: A retail store suffers a power outage during a heat wave, leading to spoiled inventory and lost sales. The store's business interruption insurance could compensate for the financial losses incurred during the downtime.

Coverage Considerations for Heat-Related Risks

Understanding your insurance coverage is vital in managing heat-related risks. Here are some key considerations:

Workers’ Compensation and Heat Illness

Preventing heat-related illness is important, but even if you’re careful, illness could happen. Heat exhaustion and heat stroke may be considered workers’ compensation claims if they occur during work-related activities. Workers’ Compensation coverage is important to protect both you and your employees during extreme heat. Work with your agent to:

• Make sure your policy complies with requirements in your state.
• Understand what documentation may be required if a claim is filed.
• Review your policy details and consult with your insurance provider to confirm coverage specifics.
• Discuss preventative measures you are taking for heat illness prevention.

Business Interruption Insurance

What is business interruption insurance, and do you need it for heat waves? This coverage can protect against financial losses due to temporary closures or reduced operations caused by extreme heat. Your agent can help evaluate your policy to ensure it includes coverage for heat-related damages. Business interruption insurance can provide peace of mind and financial stability during unforeseen disruptions.

Property Damage and Insurance

Can heat waves damage your commercial property? Yes! Extreme heat can lead to structural damage, such as roof deterioration and HVAC failures.

Work with your agent to conduct a thorough assessment of your property and identify potential coverage gaps. They can help you address any issues proactively to minimize the risk of a large loss.

FAQs on Heat-Related Risks

Q: How can I protect my small business during a heat wave?

A: Implement a heat wave preparedness plan as outlined by Ready.gov, prioritize employee safety, and ensure your property and vehicles are well-maintained. Regularly review your insurance coverage to confirm protection against heat-related risks.

Q: Can heat waves damage my commercial property?

A: Yes, extreme heat can cause structural damage and HVAC failures. Regular inspections and maintenance can mitigate these risks. Consider investing in heat-resistant materials and technologies to enhance property resilience.

Q: How do I prepare my business property for extreme heat?

A: Conduct property inspections, schedule HVAC tune-ups, and invest in backup power solutions to prevent business interruptions. Implement energy-efficient cooling systems to reduce strain on HVAC units during peak heat.

Q: Does business insurance cover heat-related damages?

A: Review your policy to ensure coverage for heat-related expenses like certain business interruptions. Consult with your insurance agent to explore additional coverage options if necessary.

Q: How can employers prevent heat illness at work?

A: Provide training on heat illness prevention, adjust work schedules, and ensure access to hydration and cooling stations. Implement a heat illness prevention program to educate employees on safety protocols.

Q: How does hot weather affect commercial vehicles?

A: Hot weather can impact tire pressure, batteries, A/C systems, and fluid levels. Regular maintenance is crucial to prevent heat-related breakdowns and other issues. Avoid storing flammable materials inside or near parked vehicles.

Q: What maintenance do fleet vehicles need in the summer?

A: Check tire pressure, fluid levels, and avoid storing sensitive items in vehicles during extreme heat. Implement a routine inspection schedule to catch any heat-related issues early.

Stay Safe This Summer

By focusing on these important areas, you can help reduce heat-related risks to your business. Remember, proactive measures and adequate insurance coverage are essential in navigating the challenges posed by extreme heat.

Talk to an insurance agent to ensure your commercial policy includes all the coverage your business needs to stay safe during these hot summer months.