Fall is often a busy time for Maryland businesses. Summer vacations are winding down, customers are getting back to their regular routines, and many companies are preparing for a stronger finish to the year. For some businesses, that also means hiring new employees.
If you’re adding people to your team this fall, there is more to consider than job descriptions, payroll, and training. Workers compensation insurance should also be part of your hiring checklist.
Accidents can happen in almost any workplace, even when you have good safety procedures in place. An employee could slip and fall, suffer an injury while lifting equipment, or develop a work-related condition over time.
Workers compensation insurance is designed to provide benefits for eligible employees who experience work-related injuries or illnesses. It can also help protect your business from some of the financial consequences associated with workplace injuries.
For a growing business, having the right coverage in place before bringing on new employees is an important part of responsible planning. One reason to review your policy when hiring is that your business may no longer look the same as it did when your current policy was established.
Consider what has changed:
- Are you adding several employees?
- Are new employees performing different types of work?
- Has your payroll increased?
- Are employees working at different locations?
- Are you adding seasonal or part-time workers?
- Has your business expanded into new services?
These changes can affect your insurance needs. A quick conversation with your insurance professional can help determine whether your current workers compensation insurance still fits your business.
Businesses sometimes assume that hiring someone as an independent contractor means workers compensation insurance does not apply. That’s an area where employers should be careful.
Maryland’s Department of Labor says that worker classification can be complicated, and misclassifying an employee as an independent contractor can result in problems involving payroll taxes, unemployment insurance, and workers compensation premiums. ***
If you’re unsure how a worker should be classified, don’t simply make an assumption based on the person’s job title or how you pay them. Discuss the situation with the appropriate professional.
August is a natural time for business owners to look ahead. Before fall hiring gets underway, take a few minutes to review your insurance policies and make sure your information is current.
Have you added employees since your last policy review? Has your payroll changed? Are your employees performing the same type of work they were doing when you originally purchased your policy?
It’s much easier to address these questions before an accident occurs than after one.
A review can also be a good opportunity to discuss workplace safety. Maryland’s Occupational Safety and Health program, known as MOSH, works to promote safe and healthy working conditions throughout the state.
Adding employees is an exciting sign that your business is growing. But growth also brings additional responsibilities. Before your next new employee walks through the door, make sure your workers compensation insurance is keeping pace with your business. Your insurance professional can review your current coverage, discuss changes to your workforce, and help you determine whether adjustments may be appropriate.
At Lindquist Insurance, we understand that every Maryland business is different. From a small local company to a growing organization with employees throughout the DMV, having the right business insurance in place can give you greater confidence as you grow.
If you’re planning to hire new employees this fall, now is a good time to review your workers compensation insurance. Contact Lindquist Insurance today to discuss your coverage and make sure your business is prepared for the season ahead.
Visit the Lindquist Insurance Workers Compensation page to learn more about workers compensation insurance and other business insurance solutions for Maryland businesses. You can also call (301) 694-0008 for a free consultation.
We serve the Annapolis, MD, Frederick, MD, and Washington, D.C. areas.Â
*** You can review worker classification information from the Maryland Department of Labor website.
