The Frost Bites

Wendy Newbury, property lawyer at Backhouse Jones examines how arctic weather can cause an operating centre to run into millions of lost revenue due to bad planning...

Another day and yet another gloomy newspaper headline greets you at the breakfast table. It seems that we are verging on yet another Banking crisis and each day we are warned of "growth standstill"; the brink of a second credit crunch and the Bank of England slashing its growth forecast for the economy and raising the prospects of a double dip recession. What joyful news and with Christmas only just round the corner! 

Thinking of Christmas, it is now only two weeks away. This time last year we were experiencing arctic temperatures; snow and ice. So far, this autumn has been the warmest and sunniest since records began. 

We cannot however be complacent. Weather in the UK can change from one day to the next and businesses must ensure they prepare for the worst. The previous two winters have caused havoc and Government statistics reveal that 13% of small businesses were "seriously" impacted by last winter‟s bad weather with 37% experiencing weather related problems. 

Unfortunately not all of us have Father Christmas‟ sleigh to speed through the snow delivering goods in time for Christmas. What would happen if your „sleigh‟ had an accident or jack-knifed and you lost your load? What would happen if whilst you were enjoying the festivities, you returned to an office full of water because the pipes had not been lagged and they had burst? Disruptive snowfall can hamper deliveries, trigger heating / power failures and sometimes employees cannot get in to work. 

Whilst Father Christmas must have a way of combating these problems in Lapland, here in the UK we have to rely on something called INSURANCE. Even the banks are now considering the cost of insuring themselves against going bust. This is something we must all do - check the insurance policy is valid to cover such things as arctic conditions. 

Check your buildings and property. If you are going away have you lagged the pipes? Is the insulation 

thick enough? Is there enough heating oil or gas to ensure the property is kept sufficiently warm? 

Failure to do so could mean huge dilapidation issues in the New Year for Tenants, Landlords or Owners alike. Roof repairs due to heavy snowfall or insurance claims for frost damage caused to pipes and heating. The cost to businesses can quickly run into millions. 

Prevention is better than cure. Something as simple as checking your insurance can save your business thousands in lost revenue. Think now! Put in place a contingency plan to ensure your business is not put out of action by another nasty winter. 

So when Santa Claus is flying through the air on his sleigh bringing you a present, let us hope it is one of good luck and festive cheer rather than bad luck and New Year cost!