Owning a water sport business can be fun and a good investment, but you need to hire employees to help the business run smoothly. Be sure you purchase adequate Workers' Compensation to cover your employees and protect your assets.
Covered Water Sport Businesses
- Fishing
- Boating, Sailing, Yachting
- Kayaking, Tubing, Canoeing
- White Water Rafting
- Jet or Water Skiing
- Parasailing
- Kneeboarding, Skimboarding
- Kitesurfing, Kiteboarding
- Hoverboarding, Flyboarding, Wakeboarding
- Paddleboarding, Paddle Surfing
- Snorkeling or Scuba Diving
- Swimming and Diving
- Polo
- Surfing
Your water sports business could encompass dozens of activities in, on or near water. Whether you offer one or several sports, you will need Workers' Compensation for your business. For related coverage options, see Water Sport Rentals Insurance.
What is Workers' Compensation?
Many states require business owners to purchase Workers' Compensation for employees, including seasonal and temporary workers. It pays certain expenses employees incur if they are injured or suffer an illness while performing work-related tasks.
Workers' Compensation benefits
- Medical care
- Lost wages
- Death benefits
- Vocational rehabilitation
Every Workers' Compensation insurance policy has two parts.
Part One or Coverage A
Part One addresses your statutory liability, meaning the coverage your state requires you to carry. It includes no coverage limits and will pay all claims regardless of any benefit changes your state makes.
Part Two — employer liability
Part Two addresses employer liability for any employees that are exempt from Workers' Compensation coverage. These employees could include independent contractors like boat owners or dive instructors who do not purchase their own Workers' Compensation policy. Part Two can also cover legal expenses from third-party lawsuits.
Why you Need Workers' Compensation for Your Water Sport Business
Whether your business operates year-round or seasonally, you value your employees and want to protect them from injuries or illnesses. Accidents happen, and coverage provides financial resources that help employees navigate recovery and return to work as quickly as possible.
Adequate Workers' Compensation protects your business, too. It can protect your assets if you are sued by an employee, pay legal expenses related to lawsuits, and help you avoid fines for failing to carry required coverage.
Contact Your Insurance Agent
For more information on Workers' Compensation for your specific water sport businesses, talk to an agent. An agent will assist you in understanding and complying with your state's Workers' Compensation laws and help you purchase the policy that's right for your business and needs. Your agent can also review related coverage options such as Water Passenger Transportation Insurance when appropriate.
With the right Workers' Compensation policy, you receive peace of mind. It protects your employees and your assets as you help your customers have fun while playing on the water.
Frequently Asked Questions
Do seasonal or temporary workers need Workers' Compensation?
Many states require coverage for seasonal and temporary employees, so they are often included under a business's Workers' Compensation policy.
Are independent contractors covered by my Workers' Compensation policy?
Independent contractors are generally not covered unless specifically included; Part Two employer liability can address gaps for exempt workers in some cases.
What expenses does Workers' Compensation typically pay?
Workers' Compensation commonly pays medical care, a portion of lost wages, vocational rehabilitation, and death benefits for work-related injuries or illnesses.
How should I choose the right Workers' Compensation policy for my water sport business?
Discuss your operations, employee roles, and typical risks with an insurance professional so you can select coverage limits and endorsements that match your business activities.