The Rise in Seasonal Employees
As the sun shines brighter, many businesses feel the heat—not just from the temperature, but from the uptick in demands resulting from the warmer months. Take, for example, a small landscaping company that expands its workforce to handle more summer contracts. While these additional workers bring much-needed relief, they also introduce a slate of responsibilities, particularly around insurance coverage. In this post, we'll explore some essential insurance policies you need to consider when hiring summer workers. Workers’ Compensation Coverage
One non-negotiable consideration is workers' compensation insurance. Except for Texas, every state mandates companies to purchase workers’ compensation coverage, which extends to seasonal employees. This ensures that workplace injuries do not turn into legal liabilities or hefty financial claims for your business. General Liability Insurance
Bringing on less experienced employees during the summer can increase the risks of accidents or mishandled operations. It’s crucial to review your general liability policy to make sure it adequately covers these new liabilities. An update or enhancement to your policy might be necessary to maintain adequate coverage. Employment Practices Liability (EPLI)
The processes of hiring, onboarding, and potentially terminating seasonal staff come with their set of legal risks. Employment Practices Liability Insurance (EPLI) provides a safety net against claims of wrongful termination, discrimination, or wage disputes. Ensuring you have this coverage can save your business considerable headache and expense. Health Insurance Obligations
Under the Affordable Care Act, businesses with 50 or more full-time employees, defined as those working 30 or more hours per week, may be required to offer health insurance, even for seasonal employees. Failing to do so could attract penalties, so it's critical to assess whether this requirement applies to your seasonal workforce.
In summary, while hiring summer help can significantly boost productivity, it is equally vital to ensure your insurance coverage is comprehensive to prevent leaving your business vulnerable. Consulting with an insurance agent to evaluate and update your policies can make all the difference in navigating the summer smoothly and successfully.
