Hiring Seasonal Workers? What You Need to Know About Insurance
Chad Yingling

The warmer months often bring a surge in temporary employment, especially in labor-intensive fields. Take, for instance, a local landscaping business expanding its crew to tackle the many summer contracts. While extra hands can boost productivity, they also bring additional responsibilities, particularly regarding insurance coverage. Understanding what insurance you need is crucial, and here’s what you need to keep in mind.

Workers’ Compensation

Did you know that workers’ compensation is typically required by law? Almost every state mandates that companies must purchase workers’ compensation coverage, including for seasonal employees. Without it, a workplace injury could result in costly claims and significant legal risks.

General Liability

Bringing on less experienced workers could increase liability risks for your company. It's essential to review your general liability policy to ensure you're adequately covered against potential claims. Make sure your policy reflects the increased risks associated with hiring additional staff.

Employment Practices Liability (EPLI)

The processes involved in hiring, onboarding, and terminating employees carry intrinsic risks. Employment Practices Liability Insurance (EPLI) can protect your business from claims related to wrongful termination, discrimination, or wage disputes. This coverage can be a valuable safeguard as you expand your workforce.

Health Insurance

Don't neglect health insurance obligations, especially under the Affordable Care Act (ACA). If your business has 50 or more full-time employees (who work 30 hours per week or 130 hours per month), you may be required to provide health coverage, even to seasonal workers. It's vital to ensure you’re compliant with these requirements.

Hiring seasonal help can significantly enhance your productivity, but failing to carry the right insurance coverage could leave your business exposed to unnecessary risks. It’s prudent to contact your insurance agent to evaluate your specific needs and update policies as appropriate for seasonal changes in your workforce.