As the warmer months approach, many businesses, particularly those in labor-intensive fields, find themselves in need of temporary workers. Imagine a local landscaping business gearing up for its summer contract rush by hiring additional staff. While these extra hands can boost productivity, they also bring added responsibilities, especially concerning insurance coverage. This post will guide you through essential insurance coverages you need to consider.

Health Insurance

Don't forget health insurance obligations. Under the Affordable Care Act, businesses with 50 or more full-time employees, defined as those working 30 hours per week or 130 hours per month, may be required to provide health coverage—even for seasonal employees.

Workers’ Compensation

Workers’ compensation is a must as every state, except Texas, mandates that companies purchase coverage. This includes seasonal employees. Without this coverage, a workplace injury could lead to costly claims and legal risks.

General Liability

With the hiring of less experienced workers, liabilities increase, making it crucial to review your general liability policy. Adequate coverage ensures protection against potential claims resulting from employee mishaps.

Employment Practices Liability (EPLI)

Hiring, onboarding, and termination processes are fraught with risks. Employment Practices Liability Insurance can protect against claims related to wrongful termination, discrimination, or wage disputes.

Hiring seasonal workers can significantly enhance your business’s capacity to meet increased demand during summer. However, failing to secure the right insurance coverage could leave your business exposed to significant risks. Be proactive and consult with your insurance agent to evaluate your needs and update your policies accordingly.