Summer Hires? Key Insurance Tips You Need to Know

As the warmer months roll in, businesses often experience a surge in temporary employment to meet seasonal demand. For instance, consider a small landscaping business that expands during the summer to manage increased contracts. While these extra hands are essential for maintaining productivity, they also bring additional responsibilities, particularly concerning insurance coverage. This blog post will guide you through the common insurance coverages you need to consider.

Workers’ Compensation

Workers’ compensation is an absolute must. Every state, except Texas, mandates that companies purchase workers’ compensation coverage, even for seasonal employees. Without it, a workplace injury could lead to costly claims and significant legal risks.

General Liability

Hiring less experienced workers can increase liability risks, so it's crucial to review your general liability policy. Ensuring you’re adequately covered can protect your company from potential claims arising from mishaps or accidents involving your new hires.

Employment Practices Liability (EPLI)

It's vital to cover potential risks in your hiring, onboarding, and termination processes. Employment Practices Liability Insurance (EPLI) can protect against claims related to wrongful termination, discrimination, or wage disputes, which can occur even in seasonal employment settings.

Health Insurance

The Affordable Care Act requires businesses with 50 or more full-time employees (defined as those working 30 hours per week or 130 hours per month) to provide health insurance coverage, even to seasonal employees. Make sure your business is compliant to avoid penalties.

Ultimately, hiring seasonal help can significantly boost productivity, but failing to carry the right insurance coverage could leave your business exposed to unnecessary risks. Talk with your insurance agent to evaluate your needs and ensure your policies are up-to-date and offer adequate protection.