Christmas and New Year aren’t so much a break as a blur for the majority of business owners. Trading hours stretch, customer behaviour shifts, staff juggle fatigue and festive cheer, and everything happens in the middle of an Australian summer that loves to turn the heat right up.

Yet while the tinsel goes up, risk doesn’t politely wait until February.

According to new analysis from BizCover, incidents affecting small businesses don’t take a holiday. In fact, the Christmas–New Year stretch can be one of the most incident-prone periods of the year, just in different ways, for different industries, and often at the moments you least expect.

BizCover analysed claims lodged for incidents occurring between 1 December and 31 January across six years (2019–2025), with a particular focus on high-pressure ‘special days’ like Christmas Day, Boxing Day and New Year’s Eve. The result, according to Sharon Kenny, Head of Marketing at BizCover, is that festive cheer and operational risk often go hand in hand.

“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,” Kenny said.

And intensity, as any small business owner knows, tends to bring a few gremlins along for the ride.

Who cops it most when Santa comes to town?

Not all industries experience the holidays the same way. Some shut up shop entirely. Others hit peak season and don’t come up for air until late January.

The claims data shows that Trades, Hospitality and Retail bear most of the risk during the Christmas–New Year period.

Trades dominate the picture, accounting for 42 per cent of all incidents in December and January. That’s largely driven by the frantic pre-Christmas rush, when homeowners want everything fixed, finished and sparkling before relatives descend.

“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,” Kenny explains.

Hospitality follows at 19 per cent. No surprises there. Cafés, pubs, restaurants and venues are juggling bigger crowds, longer hours and a workforce that often includes seasonal or temporary staff.

Retail (10 per cent) and Services (7 per cent) track close behind, fuelled by holiday spending and summer foot traffic. Health Services round out the top five at 5 per cent. It’s a reminder that illness and injury don’t take public holidays, even if the rest of us would like them to.

“When customers are celebrating, travelling, eating out, shopping, or fixing things at home, they want and need certain businesses to remain open. And where there’s sustained activity, incidents will follow,” Kenny concludes.

The danger days for incidents

Zoom in on the big-ticket dates such as Christmas Eve, Christmas Day, Boxing Day, New Year’s Eve and New Year’s Day, and the risk profile shifts again.

Hospitality jumps to the top of the list, responsible for 31 per cent of all ‘special day’ incidents. Bigger crowds, longer sittings, late nights and occasionally erratic customer behaviour can turn festive buzz into a perfect storm.

Retail comes next at 22 per cent, driven by last-minute shopping scrambles, Boxing Day sales and pre-party dashes.

“With these special days often tied closely to shopping surges, it’s no surprise that the Retail sector sees an increase in incidents,” says Kenny. “Busier trading can heighten exposure to risks like equipment and technology failures, customer incidents, theft and accidents.”

Trades drop to third place at 21 per cent, largely because many tradies down tools over public holidays, halving their exposure on those particular days.

Health Services and Services still feature, proving that some businesses never fully close, no matter what the calendar says.

“When activity spikes in a short window, risks are concentrated, too,” Kenny says.

What actually goes wrong?

Across December and January, a few incident types consistently rise to the top. Third-party property damage leads the pack, accounting for nearly one in four claims. Busy spaces, more people, more vehicles and tighter turnarounds increase the odds that something or someone, cops a knock.

Forced-entry theft ranks second at 11 per cent, particularly affecting businesses that close over the holidays.

“Risks don’t disappear just because a business is closed down for a time,” Kenny says. “In fact, closures can create a different kind of exposure.”

Equipment and tech failures sit close behind, reflecting the strain placed on tools, systems and machinery during peak trading. Add heat, long days and reduced maintenance windows, and it’s a recipe for breakdowns.

Accidental property damage and severe weather events round out the top five. The latter is a distinctly Australian wildcard thanks to storms, floods and heatwaves that don’t care about your reopening date.

“The holiday period doesn’t necessarily create new risks, but it does reshape where and how risks occur,” Kenny concludes.

Mondays: the real silent assassin

One of the more surprising findings from the report is thatiIncidents peak on Mondays in both December and January. Additionally, rather than clustering only around public holidays, claims are spread across the season, with a noticeable spike when businesses restart after closures.

The most common incident date overall is 15 January, followed closely by Christmas Day itself.

“By the 15th of January, most businesses are either already open or beginning to start up operations again,” Kenny explains. “After a shutdown period, this is a natural point where incidents can spike.”

Monday reopenings often combine returning staff, fresh deliveries, equipment being switched back on and the pressure to get back into gear fast. If something has gone wrong quietly during a closure, Monday is usually when it is discovered.

“The timing shows a real holiday arc rather than a single danger zone,” Kenny says. “Incidents rise into mid-December, continue right through Christmas Day, and peak again as businesses restart in January.”

The lesson for small biz?

The festive season doesn’t need to be feared but it does need to be planned for.

The data suggests risk rises when businesses are at their busiest, and again when they restart after a break. That makes December preparation and January reopening routines just as important as what happens on the big days themselves.

“Holiday risk is generally tied to the operational realities of a busy trading period: busy spaces, fast turnarounds, overworked tools and vacant premises,” says Kenny.

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