Texas summers bring more than just heat. They also bring higher risks, especially for retailers and restaurant owners. Every year, small businesses across the state face inventory loss, power outages, equipment failure, and unexpected shutdowns due to extreme temperatures and rolling blackouts.

If you're a retailer or restaurant owner, you already know that summer is busy and unpredictable. The question is, will your insurance coverage be ready for it?

In today's Aegis blog post, learn some of the risk summer weather can pose to Texas businesses, what your insurance may and may not cover, and how to ensure you have coverage that will offer you the protection you need.

The Real Risks of a Texas Summer

Summers in Texas can cause a wide range of issues that impact your business and your customers. These can include:

– Heat Waves

Higher temps can stress HVAC systems, cause refrigeration equipment to fail, and damage heat-sensitive inventory like perishable foods, electronics, and other sensitive merchandise.

– Blackouts and Power Surges

When our state's power grid is overloaded, rolling blackouts or unexpected surges can occur, resulting in:

• Operational shutdowns
• Damaged POS systems and appliances
• Spoiled refrigerated or frozen inventory
• Interrupted customer transactions during peak business hours

Even a short blackout or power surge can cause significant losses, particularly to businesses that depend on refrigerated or frozen inventory, or expensive electronics and tools.

– Storms and Equipment Damage

Fast-moving summer storms can cause property damage, roof leaks, or even fires, especially when electrical systems are pushed to the limit.

With all of these summer dangers, it's essential that your business has the Commercial Insurance coverage in place to protect against these costly losses.

What Insurance Can (and Can't) Cover

Before summer hits with full force, now's the time to review your Business Insurance policies. It's important for every business owner to consider these questions:

– Does my Commercial Property Insurance cover inventory loss from power failure?

Some policies only cover spoilage or equipment damage if the power outage starts on your property and not from the state power grid. You may need to add spoilage or equipment breakdown coverage to your current policy to be sure.

– Do I have coverage for power surge damage?

Even a short power surge can fry the electrical components in your cash registers, A/C compressors, or sensitive electronics. Make sure your Commercial Property policy includes equipment breakdown or electrical surge protection.

– Would Business Interruption Insurance kick in if I had to close during an extended outage?

If you lose revenue due to a heat-related shutdown or blackout, Business Interruption coverage may help, but only if it's part of your existing policy.

– Are my HVAC and refrigeration systems covered?

If your cooling systems fail due to mechanical breakdown (not physical damage), you might not be covered unless you have equipment breakdown insurance. This should be a key part of any business insurance portfolio in Texas, but especially those running restaurants, bakeries, delis, and floral shops that need refrigeration.

By understanding the risks of Texas summers and how better policy coverage can help, you can hopefully avoid the financial setbacks that often arise in the summer months.

What You Can Do Now

With Texas weather, anything can happen, so your business needs to be prepared now to weather the heat and possible storms. Some of the proactive steps you can take now include:

1. Checking your current policy: Don't assume you're covered for every type of weather event or loss.
2. Add Spoilage and Equipment Breakdown Coverage: If you rely on refrigeration or electrical systems, you need to know your coverage protects against these losses.
3. Ask about Business Interruption Coverage: This covers losses related to blackouts or storm-related closures.
4. Review your HVAC and electrical systems: Have a professional service your equipment before summer hits full swing.

With these steps, you can mitigate some of the risks that come with the unpredictable weather in Texas, and ensure your business is steady and stable in the summer months.

Don't Wait Until It's Too Late

Heat waves and blackouts are a fact of life in Texas. The good news is that the right insurance coverage can keep a short-term disruption from turning into a long-term loss.

Call Aegis Insurance & Financial Services today at 713-850-7622 to speak with a Commercial Agent or schedule a consultation. Let's review your coverage before the next heat wave hits so your business stays cool, protected, and profitable.