Business Owners: Summer Brings Risks You Might Not Be Thinking About

If you run a business, summer probably means busier operations, more foot traffic, and for a lot of our commercial clients, things like outdoor events, patios, pop-ups, and seasonal staff. All of that is good for business. It also creates risks that your standard policy may not be set up to handle.

Here's what we see come up most often this time of year.

Outdoor events and expanded premises.

If you're running a tent event, hosting a customer appreciation day, operating a pop-up at a local market, or just opening up a patio space for the season, your standard general liability policy may not extend to those activities and locations automatically. Many venues and local municipalities require their own proof of coverage before they'll let you set up. Short-term event liability policies are available and often inexpensive, but they need to be in place before the event, not after something happens.

Seasonal and part-time employees.

Summer help is great. Uncovered summer help is a problem. Workers' compensation coverage is required for employees in New Jersey, including part-time and seasonal workers. If you're bringing on staff for the summer and they're not reflected in your policy, you've got an exposure. Let us know when your headcount changes.

Liquor liability.

If you're serving alcohol at a business event or on an expanded patio, that's a separate and significant liability exposure. Standard general liability policies often exclude alcohol-related claims. A liquor liability endorsement or standalone policy covers you if a guest is injured, causes an accident, or injures a third party. It's not expensive. It's something that needs to be in place.

Heat-related workers' comp claims.

This one's more relevant than people expect, especially for businesses with outdoor workers, construction crews, landscapers, or delivery drivers. Heat exhaustion and heat stroke are compensable injuries, and the summer months see a spike in these claims. Document your heat safety protocols. It matters at claims time.

If your business operations shift seasonally and you haven't reviewed your coverage since last fall, there's a good chance something's changed that your policy doesn't reflect yet. Give us a call and we'll walk through it.