Weather-related damage to businesses caused £188 million of insurance claims in the first quarter of 2018. FM Global's Owen Lewis gives practical advice on how to prepare for bad weather.
Last year, the UK enjoyed one of the hottest summers on record, erasing the memories of the disruption caused by last winter's 'Beast from the East' and Storm Emma. Despite our short-term memory, the UK economy was severely impacted from these winter storms, with an estimated loss of £1 billion a day to the national economy[1]. Indeed, with the return of the cold weather comes a host of potential hazards and property risks for business owners.
Research conducted by the Association of British Insurers (ABI), showed that the cold weather experienced in the UK last winter had huge financial implications. In the first quarter of 2018, insurance pay-outs to homeowners and businesses for storm, flood and burst pipe damage increased 290% - from £93 million to £361 million. In this same period, some 86,000 claims were handled, a huge increase in comparison to the 29,000 claims handled in the previous quarter. These statistics suggest that the UK is not adequately prepared for risks associated with colder weather.
What are the risks of winter weather?
Winter weather can bring about a number of potential threats to facilities. Structural damage to roofs can be caused by heavy snow and high winds. The weight of drifted snow can lead to collapse if the structure is not designed to account for these temporary imposed loads. Such a collapse could lead to severe damage to the contents and the internal environment below. While building collapse is comparatively rare in the UK, the cycle of a nightly freeze and daily thaw can expose vulnerabilities in building services and production systems, which may cause pipes to burst, potentially resulting in extensive water damage.
During winter, essential fire protection equipment such as sprinkler systems can be damaged by freezing weather, with pipes bursting, or systems failing, leaving buildings vulnerable to the risk of a fire.
Along with the risks associated with winter weather comes preventable economic repercussions. According to the ABI, in the first quarter of last year £188 million was claimed under commercial policies for weather-related damage. Unless businesses adequately prepare, they will again run the risk of disruption to their operations and the potential for delaying or disappointing their customers.
Measures to reduce risk
It is never too late to start preparing for winter weather. Many risk managers can be daunted by the misconception that winter weather proofing is labour intensive. Potential damage from winter weather such as burst pipes and collapsing roofs can be easily avoided at facilities by adhering to the steps below:
Winter is coming, but it's not too late to prepare. By taking simple and practical actions to minimise risk where possible, businesses can become more resilient - something we at FM Global believe is the greatest asset an organisation can have. Being resilient this winter will put your business in the best possible position to be successful, by helping to make sure that the only thing falling is snow, not sales.
Owen Lewis is group manager account engineering at FM Global's London Operations.
[1] The Guardian, "Freezing weather costs UK economy £1bn a day" https://www.theguardian.com/uk-news/2018/mar/03/freezing-weather-storm-e...