The warmer months are a bustling time for many businesses, particularly those that thrive on seasonal demand. Take, for example, a local landscaping business that ramps up operations to fulfill summer contracts or a regional event venue that hires additional staff to handle summer festivals. While these extra hands are crucial for meeting increased demand, they come with added responsibilities, especially in the realm of insurance.
Here, we explore the key insurance coverages you must consider when hiring summer workers to ensure you mitigate risks and protect your business:
Workers’ Compensation
Workers’ compensation isn't just a good idea; it's a legal requirement in all states except Texas. This coverage is essential for protecting your business from costly claims and legal risks associated with workplace injuries, whether your employees are full-time or seasonal.
Health Insurance
Under the Affordable Care Act, companies with 50 or more full-time employees, including those who work at least 30 hours a week or 130 hours a month, must provide health insurance—even if they are seasonal. Failing to recognize these obligations could lead to significant penalties.
General Liability
Hiring temporary staff can increase liability risks, particularly if workers lack experience. It is crucial to review your general liability policy to ensure it covers potential claims related to property damage or bodily injury caused by your employees.
Employment Practices Liability Insurance (EPLI)
The processes of hiring, onboarding, and potentially terminating summer staff can expose your business to claims of wrongful termination, discrimination, or wage disputes. EPLI safeguards against these risks, providing essential protection for your business operations.
Bringing on seasonal help undoubtedly boosts your business's productivity, but remember that without the right insurance coverage, you could be leaving your enterprise exposed to unnecessary risks. Always discuss your specific needs with an insurance agent to ensure your policies are up to date and appropriately adjusted for your summer workforce.