Holiday Business Closures: Ensuring Workers’ Compensation Coverage During Seasonal Downtime

State workers’ compensation laws generally provide employers with immunity from personal injury and wrongful death claims when they provide coverage to their employees. This coverage can either be in the form of workers’ compensation insurance or self-insurance, or in some cases it can involve participation in a state-sponsored workers’ compensation program.

This immunity can prove essential for employers, and it is the primary “benefit of the bargain” of providing workers’ compensation coverage. As a result, employers need to make sure they do not lose this immunity by failing to ensure coverage during the holiday season.

Addressing Workers’ Compensation Risks During the Holiday Season

What can employers do to ensure workers’ compensation coverage during seasonal downtime? Here are some tips from the lawyers at Rendigs:

1. Talk to Your Workers’ Compensation Insurer, If Applicable

One of the simplest, and most important, steps businesses can take is to talk to their workers’ compensation insurers, if applicable. If you have questions about whether your company’s policy covers risks during the holiday season, it will be well worth getting your questions answered. If any risks aren’t covered, finding out now will allow you to plan (or secure coverage) accordingly.  

2. Clearly Distinguish Between Work Time and Personal Time

Another way employers can mitigate their workers’ compensation-related risk during the holiday season is by clearly distinguishing between work time and personal time. This can be especially important for employees who work from home. Since workers’ compensation generally only covers injuries sustained on the job, making clear that employees are off the job during the holidays can help employers avoid potential claims.

3. Make Sure Employees Clearly Document Their Work Hours  

In this same vein, employers can also mitigate their risk by adopting—and enforcing—policies that require employees to clearly (and timely) document their work hours. While an employee’s timesheet won’t necessarily be determinative in the event that the employee files a claim, having this type of policy in place can still help to prevent claims (both under workers’ compensation and outside of workers’ compensation) in many cases.

4. Avoid Common (and Unnecessary) Workers’ Compensation Pitfalls

Employers should also be especially careful to avoid common (and unnecessary) workers’ compensation pitfalls during the holidays. For example, asking an employee to run an errand on the way in (or on the way home) could transform the employee’s commute from a personal task to an activity that is within the scope of his or her employment.  

5. Investigate, Document and Report All Claims Promptly

Finally, as is the case year-round, employers should investigate, document and report all claims promptly during the holiday season. Not only will this provide the greatest opportunity to defend against the claim successfully, but it can also help mitigate against the risk of facing insurance coverage-related issues due to holiday business closures or other similar types of issues.

Schedule a Call with a Workers’ Compensation Lawyer at Rendigs

We have extensive experience advising and representing employers in connection with all workers’ compensation-related matters. If you have questions or concerns related to the holiday season, call 513-381-9200 or tell us how we can help online to arrange a confidential consultation.