BizCover’s latest Holiday Hazards Small Business Risk Report finds higher incident activity for Australian small businesses over the December–January period, with exposures concentrated around public holidays, Mondays, and the mid-January restart.
The report analyses insurance claims arising from incidents that occurred between Dec 1 and Jan 31 across six holiday seasons, from 2019 to 2025. Drawing on BizCover’s small-business portfolio, the study segments incidents by industry, date, and incident type to show how risk patterns change over the summer holiday period. Trades businesses account for 42% of all incidents recorded in December and January. Hospitality represents 19% and retail 10%, with services at 7% and health services at 5% of incidents during this window.
Sharon Kenny, head of marketing at BizCover, said many small firms may not fully factor these holiday patterns into their planning. “The festive season might feel like a break for some, but for many businesses, it’s one of the most intense periods of the year. Understanding when and how incidents tend to happen over this window helps owners plan smarter, whether that’s rostering on extra staff to meet demand, making equipment checks before the heat hits, or tightening security before closing the doors,” Kenny said. She links the incident profile to how work is scheduled and delivered ahead of and during the holidays. “Longer daylight hours and compressed end-of-year timelines can also mean more jobs packed into fewer weeks, which naturally lifts exposure to accidents and mishaps,” she said.
The BizCover dataset indicates that risk is spread across the festive period, with several clear peaks rather than a single “danger zone.” Around 10% of all incidents occur on five “special days”:
Across the six-year period, Jan. 15 is the most common incident date, followed by Dec. 25. Jan. 28, Dec. 13, and Jan. 20 make up the remainder of the top five dates. On these dates, hospitality accounts for 31% of incidents, retail 22%, and trades 21%, reflecting the sectors most likely to be operating and drawing customer traffic when many other businesses are shut or running reduced hours. “By the 15th of January, most businesses are either already open or beginning to start up operations again. After a shutdown period, this is a natural point where incidents can spike. Secondly, Christmas Day is the second highest day for incidents. For some businesses, this is not a day they can afford to take off. Incidents happening on 25 December reflect venues hosting celebrations, stores trading in tourist areas, and health services that need to remain open,” Kenny said.
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Mondays emerge as the most common day for incidents in both December and January. The pattern suggests a combination of losses that occur or are detected after closure periods and a concentration of activity as businesses resume operations, process backlogs, and restart equipment at the beginning of the week.
BizCover’s claims data for the December–January period also shows the distribution of incident types. Third-party property damage is the leading category, comprising about 24% of all holiday-period incidents. Forced entry theft accounts for 11%, equipment and technology failures 10%, accidental property damage 9.5%, and severe weather events 8%. Kenny said shutdowns can change – rather than remove – exposure. “Risks don’t disappear just because a business is closed down for a time. In fact, closures can create a different kind of exposure. It’s worth ensuring you have the right security measures in place before you shut down for the season,” Kenny said.
Higher workloads, extended trading hours, and summer conditions can contribute to equipment and technology failures, while weather-related claims reflect seasonal events such as storms, heavy rain, flooding, strong winds, and heatwaves. “This mix of incidents paints a clear picture. The holiday period doesn’t necessarily create new risks, but it does reshape where and how risks occur,” Kenny said. According to Kenny, the incident profile points to practical focus areas for risk management. “Holiday risk is generally tied to the operational realities of a busy trading period: Busy spaces, fast turnarounds, overworked tools, and vacant premises,” she said.
The BizCover findings come as small business insurance availability and affordability are under review at the federal level. The Australian Consumers Insurance Lobby (ACIL) has told the Parliamentary Joint Committee on Corporations and Financial Services that small business and community-sector insurance markets are facing pressure across several lines, including professional indemnity, public liability, and cyber.
The committee’s inquiry, launched in late 2025, is examining whether existing products and regulatory settings are suitable for small businesses, not‑for‑profits, and community organisations amid rising premiums and capacity constraints. The terms of reference cover accessibility, pricing, and regulation of public liability, professional indemnity, cyber risk, and business interruption insurance, as well as the broader framework in which these products are offered. Sectors identified for closer scrutiny include construction, tourism, live entertainment, and other industries where stakeholders report greater difficulty securing cover or tolerable terms. Submissions are open until March 6, 2026, with public hearings and further engagement expected.
