Ensuring Adequate Insurance for Summer Hires

As the temperatures rise, so does the demand for temporary labor across various industries. Take, for instance, a local landscaping business that expands its crew for summer contracts, or a bustling event venue hiring staff for the busy season. While welcoming additional team members can significantly boost productivity and service delivery, it also carries increased responsibilities, particularly when it comes to insurance coverage. In this post, we'll delve into the essential insurance coverages businesses must consider when hiring summer workers.

Workers’ Compensation

Workers’ compensation is a fundamental requirement for most businesses. Every state but Texas mandates that companies secure workers’ compensation coverage, which includes seasonal employees. Failure to provide this coverage can lead to costly legal risks and claims, particularly if a workplace injury occurs. Ensuring your workers' compensation policy is up-to-date is crucial for safeguarding your business against unforeseen incidents.

General Liability

Bringing on board less experienced workers can escalate liability risks. This makes it important to review and adjust your general liability policy to ensure sufficient coverage. This policy can protect your business against possible lawsuits for injuries or damages caused by the actions of your employees while on the job.

Employment Practices Liability (EPLI)

Hiring and managing temporary employees involve inherent risks. EPLI protects against claims associated with wrongful termination, discrimination, or wage-related disputes. Ensuring you have adequate EPLI coverage can shield your business from costly legal challenges that may arise during hiring, onboarding, or termination processes.

Health Insurance

Don’t neglect your health insurance obligations under the Affordable Care Act (ACA). Businesses with 50 or more full-time employees (defined as those working 30 hours a week or 130 hours a month) may need to provide health insurance coverage, even for seasonal workers. Checking your compliance with this requirement can prevent potential penalties.

Hiring seasonal help can indeed enhance your business's productivity. However, overlooking the necessity for comprehensive insurance coverage might expose your business to significant risks. It's advisable to consult with your insurance agent to evaluate your current needs and update your policies accordingly.