Essential Insurance Coverage for Summer Workers

As the temperature rises and the days grow longer, many businesses find themselves searching for extra hands to manage the uptick in workload. Take, for example, a small landscaping company that ramps up operations to manage a slew of new summer contracts. While these additional workers can help meet the seasonal demand, they also bring a host of responsibilities, particularly regarding insurance coverage. Understanding which insurance options are critical will help protect your business as you welcome temporary staff. Here, we'll discuss essential insurance coverages to consider.

Workers’ Compensation

Workers’ compensation is a necessity for almost every business. Every state except Texas requires that companies purchase workers' compensation coverage, including for seasonal employees. Neglecting this could result in costly claims and potential legal battles, especially if a workplace injury occurs.

General Liability

Hiring less experienced or temporary workers can increase your business's liability risks. This is why it's crucial to review your general liability policy before the summer surge to ensure it offers adequate protection. This coverage can shield your business in cases of injuries or damages where liability is claimed.

Employment Practices Liability (EPLI)

The processes of hiring, onboarding, and eventually letting go of seasonal employees involve intricate legal ground. Employment Practices Liability Insurance (EPLI) is designed to protect your business from claims such as wrongful termination, discrimination, or wage disputes, offering a layer of protection during these HR transitions.

Health Insurance

Under the Affordable Care Act, businesses with 50 or more full-time employees must provide health coverage, which may include your seasonal workers if they work over 30 hours a week or 130 hours a month. This requirement can sometimes be overlooked, so it’s important to stay compliant to avoid fines.

While hiring seasonal help can significantly boost productivity, overlooking the intricacies of insurance can leave your business wide open to risks. It's wise to consult with your insurance agent to evaluate your needs and update your policies as necessary. Comprehensive insurance coverage is key to safeguarding your enterprise, ensuring a smooth and profitable summer season.