The warmer months often bring a surge in temporary employment, particularly for small businesses like landscaping companies or local event venues seeking extra hands for busy summertime activities. For instance, a family-owned landscaping business might expand its team to accommodate increased summer contracts. While the extra help is welcome and sometimes necessary, it also introduces additional responsibilities, particularly regarding insurance coverage.

Workers’ Compensation

Every state except Texas mandates that companies, including those hiring seasonal employees, must purchase workers’ compensation coverage. This insurance is crucial because it covers medical expenses and lost wages for employees who get injured on the job. Without it, a single workplace injury could lead to potentially costly claims and legal risks for your business.

General Liability

Bringing in less experienced workers can increase liability risks, making it essential to review your general liability policy. This coverage protects against claims related to property damage or personal injuries that may occur on your worksite. Ensuring your policy is comprehensive enough to cover these potential events is wise.

Employment Practices Liability (EPLI)

The processes of hiring, onboarding, and even terminating workers expose businesses to significant risks. Employment Practices Liability Insurance can safeguard against claims of wrongful termination, discrimination, or wage disputes. It's a wise inclusion in your insurance policy to preemptively manage these risks.

Health Insurance

For businesses with 50 or more full-time employees, there's a legal obligation under the Affordable Care Act to provide health insurance. This includes coverage for those employees who might be seasonal but work 30 hours per week or 130 hours per month. Ignoring this requirement could result in penalties.

Ultimately, while hiring seasonal help can significantly boost your productivity during busy periods, failing to carry the right insurance coverage could leave your business vulnerable to risks. We recommend discussing your specific needs with your insurance agent to update and tailor your policies appropriately.