As the weather warms up, many businesses experience an influx of temporary employment, especially in labor-intensive industries. Consider, for instance, a small construction company hiring additional roofers for their projects or a landscaping business expanding its team for the high-demand summer contracts. While these extra hands can significantly boost productivity, they also bring additional responsibilities—particularly in terms of insurance coverage.

Workers’ Compensation

Workers' compensation insurance is crucial. Apart from Texas, all states require businesses to procure this coverage for their workers, including seasonal hires. Without it, any workplace injury could lead to expensive claims and serious legal problems.

General Liability

Bringing on less experienced summer workers could elevate your liability risks. It’s prudent to review your general liability insurance to ensure sufficient coverage as your workforce temporarily increases.

Health Insurance

Health insurance obligations shouldn't be overlooked. The Affordable Care Act mandates businesses with 50 or more full-time employees—those working 30 hours a week or 130 hours a month—to provide health coverage, even to seasonal employees.

Employment Practices Liability (EPLI)

The processes of hiring, onboarding, and termination inherently carry risks. Employment Practices Liability Insurance (EPLI) can help protect your business against claims of wrongful termination, discrimination, or wage disputes.

While bringing on seasonal staff can increase efficiency and tackle higher workloads, overlooking critical insurance coverages could expose your business to significant risks. To safeguard your operations, it’s wise to consult with your insurance agent to assess your needs and update policies accordingly.