For some it’s second nature to get ready for winter, whether that means gritting your driveway or checking the boiler. Yet many businesses could fail to do the same, potentially resulting in business interruption, property damage and claims. As the nights grow longer and the mercury begins to fall, now might be the ideal time to check your commercial property for areas which may not hold up against heavy rain or snow. You should also take the time to review your insurance policy for any exclusions which you may not be aware of should you experience weather related damage.

Snow, ice, frost, flash flooding and rapid flooding could generate risk for your organisation – ranging from burst pipes to slips and trips. While serious weather events are the exception rather than the rule, it can be impossible to predict when and where they’ll strike.

The winter of 2016/17 saw snow and heavy winds leading to a tidal surge which required thousands of people to be evacuated from their homes1 and this year is expected to be worse, with the Met Office predicting record rainfall this winter which could lead to major flooding2. With this in mind, in this bulletin Arthur J. Gallagher takes a practical look at what steps you could take to protect your workplace from bad weather this winter.

Most winter related risk management is common sense. You should identify potential areas of risk and then task the appropriate health and safety people with the responsibility of addressing them. You should do the same for any liability and business continuity risks within your organisation. Areas to address could include: your pipe work and water supply, backing up your IT systems, building inspections, improving energy efficiency, reviewing emergency procedures, working out who can work from home and arranging alternative transport arrangements where necessary.

DON’T PUT YOUR OPERATIONS ON ICE THIS WINTER - TIPS FOR MANAGING WEATHER RISK

1 http://www.bbc.co.uk/news/uk-386058422 https://www.theguardian.com/uk-news/2017/jul/24/uk-winter-rain-met-office-supercomputer-record-rainfall-flooding

DON’T PUT YOUR OPERATIONS ON ICE THIS WINTER - TIPS FOR MANAGING WEATHER RISK

Remember your Health & Safety responsibilitiesYour business has a duty of care to both your employees and the public and snowy or icy conditions can easily lead to trips and slips.

COMPUTER VIRUS RISK: USERS ARE THE WEAKEST LINK

Your winter weather risk checklist Snow, frost and ice Check that pathways, entrances, exits, emergency exits,

car parks, exterior steps and ramps are clear of snow to avoid slips and trips. Clear snow early in the day and use sand, salt or grit – never water.

Check exterior or interior pipes and ensure that they are adequately protected so that they do not burst and flood in cold weather.

Keep roof areas free from standing snow or ice that may cause damage.

Check any fleet transportation is in full working order and ready for winter. Breakdowns, winter servicing and winter tyres will all contribute to how mobile your fleet is – and how much it costs you - when snow arrives.

In winter there could be the temptation to leave the car running while it defrosts. Remember, there are motor policies – personal or fleet – that specifically exclude theft of vehicles (and loss of possessions) where keys are left in the car. Ensure your people stay with their vehicles when de-icing with the engine running.

You should make sure you know whom to call when making a claim (including out-of-hours) and make a note of any numbers for emergency suppliers such as plumbers, electricians and IT engineers. Share the list with nominated people in your organisation so if something happens, you, your people and your insurers are able to react fast and effectively.

Thawing and flash floods If your business is in a high-risk area then visit the

Environment Agency web site in England & Wales or the Scottish Environment Protection Agency (SEPA) in Scotland to check for flood warnings.

While these may be often minor, they could easily result in a public liability claim for your business if you fail to follow adequate health and safety precautions. You can help to mitigate these risks by following these steps:

• Keep footpaths and walkways clear of ice, snow and leaves to reduce the risk of slipping.

• Always keep sloping footpaths safe: if it’s snowy or frosty, clear it and grit, sand or rock salt it first thing in the morning.

• Always keep emergency exits and routes clear and safe – plus keep an eye out for any danger arising from people bringing snow into your premises on their feet.

• Allocate responsibility for snow clearing/de-icing and check it is being carried out. You could also consider outsourcing these duties to specialists who can take care of it for you.

The law surrounding slips and tripsThere are a number of legislations concerning your responsibility to prevent slips and trips at your place of work. The Health and Safety at Work Act 1974 states that access to and from places of work should be kept “safe and without such risks”. The Workplace (Health, Safety and Welfare) Regulations 1992 also specifically mentions keeping floors “free of obstructions and from any article or substance which may cause a person to slip, trip or fall”. The Occupiers Liability Act 1957 requires that visitors are kept reasonably safe in using the premises for the purposes for which they are “invited or permitted by the occupier to be there”.

Protecting your property – snow, drifting & freezingSnow damage to your property during the winter months is another risk that you need to consider. Snow collects quickly, and is surprisingly heavy – with wet snow weighting 45lbs per cubic foot – so it needs to be cleared quickly. Areas such as rooftops could crumble under the weight of snow with pressure signs including sticking doors on upper floors, visible cracking on wall surfaces and plaster cracks around door frames. You should also keep your guttering clear and ensure all exterior and interior pipe work is protected as you’ll need these when the snow begins to thaw, as bursts and flooding could cause significant damage.

DON’T PUT YOUR OPERATIONS ON ICE THIS WINTER - TIPS FOR MANAGING WEATHER RISK

Protecting your commercial assets – rapid thaw & flash flooding checklistEach year brings more and more reports of flash flooding, but fortunately there are steps you can take to prepare your business. Follow the checklist below to help mitigate some of the risk that flooding brings:

Check with the Environment Agency to see if your business is located in a flood-prone area.

Raise machinery above known flood water levels.

Make storage space for ready-prepared sandbags.

Keep drains and gutters free of debris and other blockages with regular maintenance.

Keep the roof or any terrace areas free of all vegetation that could damage the roof and let in heavy rain or snowmelt.

Commission a Flood Assessment Survey to set your baseline knowledge of the risks.

If your business, or the properties you manage, are in a high-risk area check public records to help set your flood expectations.

Stack stock, equipment and furniture on wooden pallets so that in case of a flood, they are raised out of the water potentially avoiding damage.

Seal airbrick covers to stop flood water getting in through exterior walls.

Water supply: check the plumbing of all equipment or infrastructure that uses a water supply – from washrooms to vending machines.

Sprinkler systems: minimise the risk of leakage from sprinkler systems with regular, thorough and manufacturer-approved maintenance processes.

Protecting your business continuityIf your customers can’t reach you or your employees can’t get to work, it can easily lead to chaos. Should the worst come to worst and you find that you cannot operate from your premises, it’s important to have a continuity plan. These steps will help to keep things running smoothly:

• Use technology: can’t meet face-to-face? No problem. Superfast broadband, 3G and 4G services, smartphones and free web services like Skype or FaceTime can keep you connected at minimal cost.

• Identify your business-critical activities: you may not be able to do everything, so figure out what is critical and possible and focus on that.

• Car sharing: work out who can ‘buddy-up’ and you’ll have more people in, more of the time. Find out who drives a 4x4 and use as many as possible for car sharing. Alternatively lay on minibus transport if practicable.

• Work from home: the technology is there and many people are already set up to work from home. When everything grinds to a halt, ensure you know who can work from home and let them get on with it.

• Work with your suppliers: if your supply chain is under threat, plan in advance. Discuss alternative options with your suppliers and/or customers so you can switch quickly and easily to Plan B.

DON’T PUT YOUR OPERATIONS ON ICE THIS WINTER - TIPS FOR MANAGING WEATHER RISK

About Arthur J. GallagherFounded in 1927, Arthur J. Gallagher & Co. has become one of the largest, most successful insurance broking and risk management companies in the world in this specialist market. With extraordinary reach internationally, our parent group employs over 24,000 people and provides services in more than 150 countries. Outside the US we are known as Arthur J. Gallagher and wherever there is an issue of risk, we’re there for our clients. We are dedicated to working together to create solutions that drive value and competitive advantage for our clients. Our people, our depth of technical knowledge and our global reach will deliver unrivalled advice and coverage expertise.

For more information, visit us at www.ajginternational.com.

For more information call us on

T: 0808 1781 947 E: ukenquiries@ajg.comwww.ajginternational.com

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This bulletin is not intended to give legal or financial advice, and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and/or market practice in this area. In preparing this bulletin we have relied on information sourced from third parties and we make no claims as to the completeness or accuracy of the information contained. You should not act upon (or should refrain from acting upon) information in this bulletin without first seeking specific legal and/or specialist advice. Arthur J. Gallagher Insurance Brokers Limited accepts no liability for any inaccuracy, omission or mistake in this bulletin, nor will we be responsible for any loss which may be suffered as a result of any person relying on the information contained herein.

Arthur J. Gallagher Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered Office: Spectrum Building, 7th Floor, 55, Blythswood Street, Glasgow, G2 7AT. Registered in Scotland. Company Number: SC108909.

FP820-2017 exp.10/10/18

Our conclusionsWinter weather can easily throw your business off-track, which is why it’s important to have some advance planning in place. Take the time to assess your risks thoroughly and ensure you have the correct contingency and risk management policies in place. You have a legal duty of care to your employees and members of public on your property, and spending time on preventing easily avoided slips and trips could also help you to avoid a costly claim.

Review your current insurances and check that you have the correct level of cover for your risk profile. Claiming after weather related damage can be stressful enough without the shock of discovering you’re also underinsured. Finally, if the worst happens and you cannot access your premises, make technology work to your advantage. Home working, Skype meetings and smartphones can keep your business moving.