As the warmer months roll in, businesses often see a substantial increase in temporary hires to meet seasonal demand. Take, for instance, a local landscape company bolstering its team to handle a wave of summer contracts or a small event venue adding extra staff for a busy summer schedule. While these extra hands are crucial for keeping business flowing smoothly, they also bring added responsibility for employers, particularly concerning insurance coverage. In this post, we'll explore common insurance coverages you should consider when hiring seasonal workers.

Workers’ Compensation

Workers’ compensation insurance is essential for any business taking on additional help. Almost every state requires companies to purchase this coverage, and it applies equally to seasonal employees. Without it, your business could face expensive claims and legal consequences if a workplace injury occurs.

General Liability

Hiring less experienced workers can elevate liability risks, making it crucial to reassess your general liability insurance policy. Ensuring adequate coverage is vital as these policies protect businesses from potential lawsuits over accidents or injuries in the workplace.

Employment Practices Liability (EPLI)

Whether onboarding or letting go of employees, employment practices come with their own set of risks. EPLI shields businesses from claims related to wrongful termination, discrimination, or wage disputes. This insurance can be particularly beneficial during the bustling hiring and firing cycles of the summer months.

Health Insurance

Health insurance responsibilities also come into play for some businesses. The Affordable Care Act mandates that businesses with 50 or more full-time employees (defined as those working 30 hours per week or 130 hours per month) may have to offer health coverage to their seasonal staff. Failing to comply can result in penalties, so ensure you're aware of your obligations under federal law.

While hiring seasonal help is a fantastic way to boost productivity during peak periods, neglecting your insurance responsibilities could leave your business vulnerable. Speak with your insurance agent to evaluate your current needs and update your policies accordingly. This proactive step will not only protect your business but provide peace of mind throughout the busy season.