John O'Connor, Vice President of Strategic Product & Platform Development for Travelers Small Commercial, tells NU that identifying the risks seasonal staff can bring to the business—whether it's a restaurant, landscaper or general contractor—is key to protecting the company during and beyond the summer months.
What are some of the inherent risks that come with seasonal employees?
First and foremost, business owners should think about the risks involved with bringing on these employees. Seasonal employees can create year-round risk for a business thanks to increased exposure to injuries and potential auto accidents. To help overcome these issues, it's important for business owners to create a detailed training and supervisory program. This can help to reduce the chance of injury to [employees] and others.
Employers need to understand how seasonal employees could impact Workers' Compensation and Auto coverage. Without proper training and supervision, employers can put seasonal workers at risk for injury.
Travelers data shows that Workers' Compensation claims for small-business customers are at their peak from June through September. Lower-back strains, other back-related injuries and injuries from slips, trips and falls are the most common.
Since a typical Business Owners Policy does not include Commercial Auto coverage, a business owner may now need to invest in that coverage. If the seasonal employees will be using their personal vehicles on the company's behalf, Hired and Non-Owner Auto coverage is something for the company to consider.
Sending a seasonal employee out on what may seem like an incidental errand could create a large auto risk if the company has not evaluated its auto insurance. If seasonal employees will be doing any driving on behalf of the company, employers should consider [each employee's] motor-vehicle record during the hiring process. It's also crucial to make sure the Commercial Auto policy has the appropriate limits and coverages to protect the employee and the company.
How can agents help businesses make sure they're covered?
Insurance agents can be viewed as a trusted resource to help a business owner evaluate and plan for the risks involved with hiring seasonal workers. This change in season creates an opportunity for the agents to have a conversation about insurance coverages and current risks with their business clients.
Agents can add value by helping these clients make sure they have the appropriate coverage given the new exposures. Taking the time to meet with business customers to walk through the coverages and limits currently within the Business Owners Policy can help build the relationship with the client and provide some peace of mind.
Agents also have access to carrier information that can help businesses manage risks and can be shared with clients. Providing customers with easy-to-use tools to manage the risks of seasonal workers can be extremely helpful, as small-business owners may be focused on meeting the demands of a summer rush.
—Interviewed by Chad Hemenway
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