The warmer months often usher in a surge of temporary employment, especially in labor-intensive fields. Take, for example, a local landscaping business ramping up its workforce to tackle an influx of summer contracts. While hiring extra hands can significantly increase productivity, it also brings added responsibilities, particularly in the realm of insurance coverage. This post will explore common insurance coverages you must consider when hiring seasonal workers.

General Liability

When hiring less experienced workers, you may find your liability risks increase. Therefore, it's essential to review your general liability policy to ensure that you are adequately covered. This policy can protect your company from potential damages or injuries that occur on your premises or are caused by your employees.

Health Insurance

Don’t overlook health insurance obligations. Under the Affordable Care Act, businesses with 50 or more full-time employees (those working 30 hours per week or 130 hours per month) might be required to provide health coverage, even to seasonal employees. Ensure you're compliant to avoid potential penalties.

Workers’ Compensation

Workers’ compensation is mandatory in every state except Texas, even for seasonal employees. Without it, workplace injuries could lead to expensive claims and legal risks. This coverage will help protect both the business and its workers should an injury occur.

Employment Practices Liability Insurance (EPLI)

The processes of hiring, onboarding, and ultimately terminating seasonal employees carry inherent risks. EPLI is an essential consideration as it can protect against claims of wrongful termination, discrimination, or wage disputes.

In conclusion, hiring seasonal help can significantly boost productivity. However, failing to carry appropriate insurance coverage could leave your business vulnerable to various risks. It's highly advisable to speak with an insurance agent to thoroughly evaluate your needs and update your policies accordingly.