Can Constant Overtime Affect Your General Liability Insurance?
As Thanksgiving draws near, we find ourselves reflecting on the incredible efforts of employees who go the extra mile—especially those working overtime or stepping up during the holidays to keep businesses running smoothly. At Amelia Underwriters, we deeply value the dedication of these hardworking individuals.
While their contributions are undoubtedly invaluable, business owners should also consider how consistent overtime and extended work schedules can impact their operations—including their general liability insurance. From changes in risk exposure to adjustments in premiums, understanding these dynamics is essential for protecting your business while showing gratitude to your team.
Let’s explore how overtime might affect your general liability insurance and what steps you can take to manage these potential impacts.
A Heartfelt Thanks to Employees
First and foremost, to all the employees who dedicate their time—even during Thanksgiving and other holidays—thank you. Your commitment doesn’t go unnoticed. From customer-facing roles to behind-the-scenes operations, your hard work ensures businesses remain productive and customers receive exceptional service, even during the busiest times.
You are the heart of your workplace, and we at Amelia Underwriters celebrate your contributions.
The Hidden Impact of Overtime
While having a dedicated workforce is a blessing, extended hours and holiday operations can bring added risks that business owners should be mindful of:
Fatigue Increases Risk: Overtime often leads to fatigue, which can heighten the chance of errors or accidents. Whether it’s an employee mistake that causes property damage or a mishap leading to a customer injury, these incidents can result in claims under your general liability policy.
Fatigue isn’t just about productivity—it directly affects safety. For businesses, it’s crucial to strike a balance between meeting demands and ensuring employee well-being.
Payroll Influences Premiums: Did you know your general liability insurance premiums are often tied to your payroll? Overtime hours mean a higher payroll, which may lead to increased premiums when policies are renewed or audited.
Additionally, the classification of employees also plays a role. If overtime involves tasks outside an employee’s typical job description, it could increase risks not accounted for in your coverage.
Job Classifications Matter: The holiday season often brings changes in job responsibilities. For example, a retail employee might shift to stocking inventory, or an office worker might assist with physical tasks during busy periods. These shifts could create risks that aren’t fully covered by your current insurance policy.
Ensuring employees are classified correctly and their roles are accurately represented in your insurance plan is critical for managing potential liability.
Protect Your Business While Supporting Your Team
Balancing the demands of a growing business with the health and safety of your employees is no small feat. Here are a few ways to show gratitude to your team while safeguarding your business:
Encourage Rest and Recovery: Provide employees with adequate breaks and schedule shifts thoughtfully to reduce fatigue during busy holiday periods.
Invest in Training and Safety Protocols: Proper training ensures employees are prepared to handle new or additional tasks safely, minimizing risks.
Review Your Insurance Coverage: Regularly communicate with your insurance agent to review payroll, employee roles, and any operational changes. This ensures your coverage is aligned with your business needs, especially during high-demand periods like the holidays.
A Season for Gratitude
Thanksgiving is a time to express appreciation for the hardworking teams that help businesses succeed year-round. It’s also an opportunity to prepare for the future by recognizing the impact of overtime and holiday operations on your insurance coverage.
At Amelia Underwriters, we’re here to guide you every step of the way. From reviewing policies to customizing solutions that meet your needs, we’re committed to protecting your business, your team, and your peace of mind.
From all of us at Amelia Underwriters, we wish you and your team a safe, joyous, and gratitude-filled Thanksgiving!