As the warmer months approach, many businesses experience a surge in temporary employment, particularly in labor-intensive fields. Consider a small construction firm that takes on extra roofers to tackle an uptick in summer projects. While the additional hands are undoubtedly beneficial, they also bring added responsibilities, especially regarding insurance coverage. This post will outline the common insurance coverages you must consider when hiring summer workers.

Workers’ Compensation

Workers’ compensation is a non-negotiable requirement in all states except Texas. This coverage is essential when hiring seasonal employees as it protects businesses from costly claims and legal risks that can result from workplace injuries.

General Liability

Hiring less experienced workers can elevate liability risks, making it crucial to review your general liability policy. Adequate coverage can shield your business from the financial impact of injuries or damages caused by your workers while on the job.

Employment Practices Liability (EPLI)

The hiring, onboarding, and termination processes carry inherent risks. EPLI coverage protects against claims related to wrongful termination, discrimination, or wage disputes, providing peace of mind during potentially challenging HR situations.

Health Insurance

Businesses with 50 or more full-time employees are obligated under the Affordable Care Act to offer health coverage, even for seasonal workers who meet specific working hours criteria. Ensure your business complies to avoid penalties.

Hiring seasonal help can significantly boost productivity, but neglecting the necessary insurance coverage could leave your business exposed. Talk with your insurance agent to evaluate your needs and update your policies as required.