Eight water companies have introduced hosepipe bans in recent weeks, with Thames Water's restrictions coming into force on 23 July across London, the Thames Valley and the Home Counties - making it the biggest ban this summer. South East Water has since extended restrictions to Sussex, Surrey, Hampshire and Berkshire, the first time those areas have faced a ban in 14 years.

If your business is based in one of those regions, the good news is that the restrictions probably don't apply to you. But that doesn't necessarily mean you're in the clear. If dry weather continues, the next stage of restrictions could affect businesses too.

Where are the bans?

Water company	Area	From
South East Water	Kent	3 July
Southern Water	Hampshire, Isle of Wight	10 July
Yorkshire Water	Yorkshire (around five million customers)	11 July
South West Water	Devon	14 July
Cambridge Water	Cambridge area	17 July
Affinity Water	Central region	17 July
Welsh Water	Parts of west Wales	19 July
Thames Water	London, Thames Valley, Home Counties	23 July
South East Water	Sussex, Surrey, Hampshire, Berkshire	25 July

Anglian Water hasn't ruled out introducing restrictions, while several other suppliers are asking customers to reduce water use voluntarily.

One interesting exception is Welsh Water. There, the issue isn't reservoir levels but treatment capacity. Demand has been running around 20% above normal, meaning the network can't process water quickly enough to keep up.

What do the restrictions actually cover?

A hosepipe ban - officially called a Temporary Use Ban - is introduced by your water company rather than the Environment Agency. Breaching the restrictions can result in a fine of up to £1,000.

In practice, though, these bans are aimed mainly at households. They stop people using hosepipes or sprinklers for jobs such as watering gardens, washing cars, filling paddling pools or cleaning patios. Watering cans and water butts can still be used.

For most businesses, it's business as usual. Many commercial users whose work depends on water, such as car washes and garden centres, are exempt. However, every water company publishes its own legal notice, and the exemptions aren't identical. If your business could be affected, it's worth checking the rules that apply to your supplier rather than assuming they're the same everywhere.

When could businesses be affected?

The bigger concern for businesses is a drought order.

Unlike a Temporary Use Ban, a drought order can restrict commercial water use as well as domestic use. Depending on the circumstances, it could limit activities such as window cleaning, watering plants, filling fountains or swimming pools, or using mains water to maintain golf courses and sports grounds. Businesses with their own water supplies, such as boreholes or stored rainwater, may still be able to continue some activities.

For now, most businesses remain exempt. But if conditions worsen, that position could change.

Which businesses are most exposed?

Any business that relies on water as part of its day-to-day operations would feel the impact first. That includes window cleaners, exterior cleaning companies, car washes, garden centres, landscapers, golf clubs, sports facilities, holiday parks and hospitality businesses with large outdoor spaces.

For those businesses, the biggest issue isn't simply using less water. It's the effect on revenue if work has to stop or services have to be reduced, while wages, rent and finance repayments continue as normal.

Will insurance help?

It's worth checking, but don't assume it will.

Most business interruption insurance only pays out following physical damage to your premises or another insured event. Water restrictions aren't usually included, although some policies provide cover for utilities failures or other specific circumstances.

If your business would be heavily affected by tighter restrictions, now is a good time to check your policy wording or speak to your broker, rather than waiting until restrictions are introduced.

Five things to do now

If your business could be affected by future restrictions, a little preparation now could make a real difference.

• Check your water company's legal notice to see whether your business is exempt.
• Calculate what six weeks of reduced income would mean for your cash flow.
• Consider ways to reduce your reliance on mains water, such as water butts, storage tanks or recycling systems.
• Make sure you know who supplies your business water and what support they offer.
• If restrictions would significantly affect your income, review your funding options early rather than waiting until cash flow becomes a problem.