Winter in New York brings cold weather, heavy snow, and a big risk for businesses. Preparing your commercial property now, in the late fall, is the most important step you can take to prevent costly damages and potential lawsuits. Your Commercial Property Insurance is your financial safety net, but you must take reasonable steps to protect your building to make sure your claims are paid quickly and fully.

• How much can winter weather cost my business?
• The High Cost of Water Damage
• What is the most important step for preventing frozen pipes?
• The Winter Plumbing Checklist:
• New York's Sidewalk Laws
• Your Snow and Ice Risk Management Checklist:
• How does heating system maintenance affect my property insurance?
• The Heating and HVAC Checklist:
• Frequently Asked Questions (FAQs) About Winter Insurance
  • Does my commercial property insurance cover damage from a leaky roof caused by snow?
  • If I hire a snow removal contractor, am I still liable if someone falls?
  • Does my Commercial Property Insurance cover my income if I have to close during a blizzard?
  • Will my insurance company pay for damage if I turn the heat off during a winter vacation?
• Conclusion

How much can winter weather cost my business?

Winter storms can lead to massive financial losses for businesses across the country. In one recent year alone, winter storms caused an estimated over $10 billion in insured losses across the United States. These costs come from both property damage and business disruption.

The High Cost of Water Damage

The single biggest threat from winter weather is water damage caused by frozen and burst pipes.

• A burst pipe in a commercial building can cause damage that averages between $10,000 and $20,000 for a single event
• However, major incidents, especially in larger commercial buildings, can result in total losses that climb into the millions of dollars due to damage to walls, equipment, inventory, and lost income while the business is closed for repairs
• In one recent 12-month period, State Farm paid out over $45 million in frozen pipe and water damage claims just in New York

Hypothetical Example: A retail store in Buffalo is shut down for three weeks after an unheated storage room’s pipes freeze and burst, flooding the sales floor and ruining their holiday inventory. The insurance claim covers not only the pipe repair and inventory replacement but also the lost income due to the closure (if they have Business Interruption coverage).

What is the most important step for preventing frozen pipes?

The most important step for preventing frozen pipes is to make sure water lines in unheated areas are protected or drained before the freezing temperatures hit. Pipes freeze when the water inside expands, causing the pipe to split open.

The Winter Plumbing Checklist:

• Insulate Exposed Pipes: Wrap any pipes that run through cold areas—like basements, crawl spaces, attics, or exterior walls—with foam pipe insulation or heat tape
• Shut Off Exterior Water: Find your exterior faucets, irrigation systems, and sprinkler lines. Turn off the main shut-off valve leading to these outdoor lines and drain the lines to ensure no water is left to freeze
• Maintain Heat: Never let the heat in any part of your commercial building drop too low. Set thermostats for areas with plumbing, even those rarely used, to no lower than 45°F (7°C)
• Seal Drafts: Seal any cracks, holes, or air leaks near where water pipes enter your building to prevent frigid air from reaching them

Who is responsible for clearing snow and ice, and what does my liability insurance cover?

In New York, commercial property owners and tenants (depending on their lease) have a legal “duty of care” to maintain their premises in a reasonably safe condition, which includes clearing snow and ice from walkways, steps, and sidewalks. Your Commercial General Liability (CGL) Insurance protects you if a customer, vendor, or passerby slips on ice or snow on your property and sues you for their injuries.

New York’s Sidewalk Laws

Especially in New York City, local laws make property owners responsible for clearing sidewalks next to their buildings.

• Timing is Key: Property owners must clear sidewalks within a specific time frame after snow stops falling. For example, if snow stops between 7 AM and 5 PM, you typically have four hours to clear it
• Failing to Act is Negligence: If you fail to clear ice or snow within the required timeframe, it can be viewed as negligence in court, making it much easier for the injured person to win their lawsuit
• Costs are High: The costs associated with a serious slip-and-fall claim are substantial. The average winter slip-and-fall claim that results in lost time from work can cost an average of $50,000 to $55,000

Your Snow and Ice Risk Management Checklist:

1. Establish a Clear Schedule: Arrange a contract with a professional snow removal service before the winter starts, or assign clear, documented duties to internal staff
2. Document Everything: Keep a log of when it snowed, when the area was shoveled or plowed, and when salt or sand was applied. This documentation is your best defense in a liability lawsuit
3. Address Ice Dams: Clean all gutters and downspouts of leaves and debris before winter. Clogged gutters prevent melting snow from draining, leading to ice dams—large blocks of ice that form on the roof edge and force water back into the building.

How does heating system maintenance affect my property insurance?

Proper maintenance of your heating and HVAC system is required to ensure your property is protected and that your insurance policy remains valid. A well-maintained system prevents two major winter threats: fire and frozen pipes.

The Heating and HVAC Checklist:

• Annual Inspection: Schedule a professional inspection of your furnace, boiler, or HVAC system every year. This ensures it’s working efficiently and safely, reducing the risk of a fire caused by a mechanical failure
• Change Filters: Dirty filters restrict airflow, making the unit work harder and potentially overheat, which is a fire hazard. Replace air filters monthly or according to the manufacturer’s directions.
• Space Heater Safety: If your business uses space heaters, ensure they are placed at least three feet away from all flammable objects (like papers, curtains, or boxes) and are never left running unattended

Frequently Asked Questions (FAQs) About Winter Insurance

Conclusion

Winter weather is more than an inconvenience; it is an annual financial threat to every New York business. Taking proactive steps to insulate, drain, clean, and document your maintenance efforts is the best way to prevent damage and ensure a smooth claims process. Your preparation is your first line of defense; your specialized commercial insurance is your second.

Don’t let this winter catch your business unprepared.

The unique legal and structural demands of winter risk in New York require an expert partner. Contact the specialists at MKR Specialty Insurance today. We will help you review your Commercial Property and General Liability limits and ensure your policies are fully prepared to cover the specific hazards of the cold season. Call us or visit our website for a custom risk review.