How Do Seasonal Workers Change Your Business's Insurance Needs?

If you own a retail business that utilizes temporary or seasonal help, this article is for you. Here, we take a quick look at how seasonal workers can affect your business insurance needs.

Workers’ Compensation and Seasonal Workers 

Even if you don’t consider them full-time employees, seasonal workers must be covered by workers’ compensation. Failure to do so can result in stiff penalties significantly affecting your bottom line.

To reduce workers’ compensation liability, perform a full assessment of your seasonal workers and offer extensive training on safety protocols for any machinery, chemicals, or other hazardous materials they might work with. Importantly, you’ll also want to confirm that your workers’ wages are accurately reported as this can affect your premium and coverage.

Liability Insurance and Seasonal Workers 

With seasonal workers comes a seasonal increase in the amount of foot traffic in your establishment. Discuss the boom in business with your local insurance agent to ensure that your coverage limits are adjusted accordingly. The last thing you want is for a major accident or significant property damage to set your business back.

Now is also a great time to discuss your policy coverage as it relates to employment practices liability. Remember, more seasonal workers means a greater risk of work-related lawsuits. Along the same lines, make a thorough assessment of your seasonal products and adjust coverage if trending products lead to increased product liability.

Other Considerations 

• Commercial Auto: If you have seasonal workers behind the wheel of company vehicles, make sure they are included in your policy. Don’t forget to confirm that they have a valid driver’s license and a good driving history. You may also want to consider adding non-owned auto liability coverage if your seasonal workers use their own vehicles.
  
  
• Property Insurance: If you tend to hold more inventory throughout peak seasons, make sure that your property insurance coverage reflects the temporarily increased value. You might also want to adjust your business interruption insurance during peak times of the year to cover potential losses.
  
  
• Cybersecurity: Temporary workers may introduce new cybersecurity risks. Make sure all employees are trained in data protection to reduce your digital liability.

Your business insurance policies are meant to protect you, your employees, and your customers. Talk to Cross Insurance today to learn more.

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This article is for general informational purposes only and is not to be relied upon or used for any particular purpose. Cross Insurance shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, insurance, accounting or other professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. The views expressed in this article are that of its author and do not necessarily represent the views of Cross Financial Corp. and its subsidiaries and affiliates (“Cross Insurance”) or Cross Insurance’s management or shareholders.