Seasonal Business Insurance: Are You Covered This Summer?

Summer is the most profitable time for many seasonal businesses, including restaurants, gift shops, builders, pool contractors, event venues, landscapers, and more. To ensure your company’s busiest season runs smoothly, it’s crucial to understand the limits of your business owner’s policy (BOP).

Your commercial insurance acts as a shield against the many liability risks that are present during summer and beyond. So, it’s wise to make sure your coverage accurately reflects your inventory, equipment, and staff numbers to ensure your business can operate without hiccups or surprises.

While you can review your policy on your own, it’s best practice to meet with an expert insurance agent. If you’re looking for a Massachusetts business insurance expert to help you understand your deductibles, identify coverage exclusions, and tailor your coverage limits, contact our team today.

Read on for an overview of the insurance coverages you should review (and update if needed) to help keep your seasonal business protected all summer long.

General Liability Insurance

Because summer brings more customers to your business, it can also bring more accidents, property damage claims, or other incidents where you may be liable. Fortunately, general liability insurance — a key part of most business insurance policies — covers you in the event of bodily injury or property damage claims associated with your business operations.

To stay prepared, review your general liability insurance to confirm whether outdoor seating, seasonal displays, and outdoor events fall within its current scope. If outdoor activities are a key part of your seasonal business operations, work with an expert insurance agent to review and update your general liability policy as needed.

Workers’ Compensation

If you plan to hire extra staff to get through the season, workers’ compensation coverage is mandatory for virtually every employee from their first day on the job, with no minimum-hours threshold. Seasonal, temporary, and part-time staff are covered under the same rules as your year-round team.

The Department of Industrial Accidents can issue a stop-work order and impose fines on employers who don’t have coverage in place, which can mean serious consequences for your business, especially during peak season. Before you staff up for the summer, make sure your payroll estimates reflect your actual seasonal headcount rather than your off-season numbers.

It’s particularly important to be aware of hazards if your employees work outdoors in the summer. Review safety protocols with all new hires, regardless of how long they’ll work for your company.

To keep up with your work load, you might need to hire seasonal contractors, but Massachusetts has one of the strictest independent contractor standards in the country. Before treating a seasonal worker as a contractor rather than an employee, verify the classification with your agent or an employment attorney; getting it wrong can expose you to back wages, penalties, and workers’ comp liability all at once.

If you do hire independent contractors, ask to see a copy of their own liability and workers’ compensation policies. Always request a certificate of insurance from any contractor before they begin working for your business.

Commercial Property Insurance

Summer storms can bring heavy wind, rain, and flooding, all of which can cause serious damage to your commercial property. Transportation to and from outdoor events is also a common cause of property damage during the summer. Review your commercial property insurance policy to understand what’s covered and what’s not, including certain weather events.

If your business relies on refrigeration equipment, HVAC, outdoor furniture, and special machinery, review your commercial property policy with your agent to confirm that it’s properly covered, and update the policy if needed.

If your business’s inventory increases during the summer, you may also need to review your policy to raise your coverage limits.

Waterfront businesses have specific commercial property needs; if you’re looking for experts on coastal businesses in New England, learn more about our offerings for coastal business property insurance.

Commercial Auto Insurance

In Massachusetts, your commercial auto insurance must cover every vehicle in your company’s fleet, from delivery vans to landscaping trucks to customer transport vehicles. Having commercial auto insurance is non-negotiable if you or your employees drive any type of vehicle for your business.

If you purchased any new vehicles recently, update your policy as soon as possible. Commercial auto insurance can cover damage to your vehicle, injuries sustained by drivers or passengers, and liability for accidents involving your company’s vehicles.

Business Interruption Insurance

If a storm, fire, or other event causes your business to shut down for a period of time, business interruption insurance can cover lost income and ongoing expenses, helping to keep your company afloat.

It’s a good idea to invest in a business interruption policy if your business wouldn’t be able to withstand an extended closure during your peak season. Be sure to review the policy details with an agent so you understand what types of events are covered.

Equipment Breakdown Insurance

Equipment breakdown insurance is an optional add-on to your business owner’s policy. It can help cover repair and/or replacement costs for your company’s essential machinery, lost income, spoiled inventory, and necessary expenses incurred during the restoration period.

Damage from internal forces, such as power surges or operator error, is frequently covered by equipment breakdown insurance. This applies to a variety of important equipment, from engines and motors to elevators, water pumps, computers, air conditioners, and boilers.

If you’re interested in adding equipment breakdown insurance to your BOP, speak with an agent today.

Product Liability Insurance

If you own a store, restaurant, or other business that sells products, it’s a good idea to have product liability insurance. This type of policy helps protect you from lawsuits involving injuries or damage caused by defective products. It also ensures your business is covered in the event of a recall.

It’s important to invest in product liability insurance even if you don’t directly manufacture your products. Regardless of the manufacturer, you could still be held liable if you sell affected products at your business.

Umbrella Insurance

An umbrella insurance policy is helpful if your business faces a particularly high risk of lawsuits or claims. Consider purchasing an umbrella policy if you’re looking for protection beyond the limits and constraints of your regular business owner’s policy.

Other Reasons to Update Your Business Owner’s Policy

Experts recommend that business owners review and update their commercial insurance policies annually. You should also work with an agent to review your policy anytime you:

• Buy new equipment
• Hire more staff
• Expand your services
• Buy new property
• Significantly increase your inventory

To stay protected, verify that your coverage limits accurately reflect the size and scope of your business.

Insurance for Massachusetts Businesses

Are you searching for an expert in Massachusetts business insurance? Look no further than C&S. With more than 60 years of experience working with local Massachusetts business owners, our team has the expertise you can rely on to keep your business protected. Get in touch today.