The festive season brings welcome downtime for many businesses. Yet, history shows it is also when the highest volume of preventable losses occur. Quiet facilities, reduced staff, and unpredictable South African summer weather all combine to elevate operational and general site risk.

 

As we approach the year-end period, consider these key exposures that typically increase during the December holiday-season:

Break-ins and theft

• Claims for burglaries and robberies rise sharply during December when premises are left unoccupied for extended periods.
• Less busy offices, warehouses, depots and business outlets become easy targets when staff presence is limited and alarm response times are unchecked.
• Clients are encouraged to ensure insurance policy wording conformity (particularly of Security prerequisites and fire-extinguishing equipment conformity) before the shutdown to avoid accidental misrepresentation at claims stage.
• Industry data shows a noticeable increase in criminal activity during the final quarter of the year. More than 35 700 burglaries and 6 200 robberies were recorded nationwide between October and December 2024. For commercial properties, periods of low foot traffic, reduced staff presence, and slower alarm responses significantly elevate exposure across warehouses, depots, and retail sites.

 

Fire-related losses

• Electrical faults, overloaded circuits, and unattended machinery are common fire triggers during holiday shutdowns.
• Even an isolated power surge can escalate to a major incident if not contained quickly.
• Fire remains one of the costliest commercial losses. Some individual incidents have exceeded R183 million, largely due to the value of specialised equipment, stock, and machinery housed on-site. Shutdown periods often increase exposure when equipment maintenance is postponed or electrical faults go unnoticed.

 

Weather damage

• Storms, hail, and flash floods continue to be leading causes of property damage during the summer period.
• With operations paused, even minor leaks or drainage failures can cause major disruption if undetected.
• Weather-related losses now account for roughly 41 percent of total claim value in Rands across South Africa. Commercial properties with older roofs, flat structures, or insufficient drainage are particularly exposed. Flooding, hail, and seasonal storm surges often lead to both structural damage and extended operational downtime.

 

Power surges and grid instability

• Even though the national grid has remained relatively stable this year with Eskom reporting profit and surplus capacity, voltage fluctuations and localised power faults still contribute to equipment and machinery damage, especially where backup systems are not maintained.
• Verify that surge protectors and uninterruptible power supplies (UPS) and emergency generators are in working order and load-tested before the shutdown where applicable.
• While large-scale load-shedding has eased this year, insurers continue to record high volumes of power-surge and equipment-failure claims. Voltage fluctuations and localised outages often impact refrigeration systems, production machinery, servers, security and access-control equipment, especially where surge protectors and UPS units are not fully maintained.

 

Overall claims activity

• The frequency of business-property claims has risen steadily, indicating that more companies are being impacted by claimable incidents.
• Industry surveys indicate steady increases in commercial claims. 36 percent of businesses filed at least one claim last year, up from 25 percent previously. Notably, 13 percent of large enterprises recorded more than ten claims in a single year, reflecting rising exposure across multiple operational areas.

 

Proactive awareness and timely preparation remain the most effective safeguards for continuity and resilience.

 

If you would like to ensure your cover accurately reflects your operational risks ahead of the shutdown, you can schedule a review here.

 

If you believe this information may assist a colleague, family member or friend, feel free to share it with them. Our aim is to support informed decision making and help more people enter the festive season prepared and protected.

 

Reach out to us here to discover how our strategic insurance and risk solutions can help strengthen your business.

 

Wyngaardt Brokers (Pty) Ltd is an Authorised Financial Services Provider (FSP 53138).

 

Disclaimer: The information provided is not intended to be a substitute for legal, medical, or financial advice, but is only provided for informational purposes. Ts and Cs, limits, and standard rates apply.