Insurance Tips for Hiring Summer Workers

As the temperatures rise, many small businesses find themselves in need of extra hands to tackle the seasonal surge in demand. Consider, for example, a landscaping business that decides to bring on additional workers to handle a series of lucrative summer contracts. While welcoming new team members can significantly amplify productivity, it also introduces new responsibilities, particularly concerning insurance coverage. This blog post explores common insurance coverages small businesses should consider when hiring seasonal employees.

Workers’ Compensation

Workers’ compensation is one of the most crucial insurance types to secure. Except for Texas, every state mandates that companies purchase workers’ compensation coverage for employees, including those hired seasonally. This coverage is vital because if a seasonal worker gets injured on the job, the business could face significant claims and legal challenges without it.

Employment Practices Liability (EPLI)

The hiring, onboarding, and termination processes are fraught with risks. Employment Practices Liability Insurance (EPLI) can shield your business from claims such as wrongful termination, discrimination, or wage disputes. Having this security can prevent costly legal battles and safeguard your business’s reputation.

Health Insurance

Small businesses must also heed health insurance obligations under the Affordable Care Act (ACA). Companies with 50 or more full-time employees, including seasonal workers who clock in 30 hours a week or 130 hours a month, might need to provide health coverage. Failing to comply with ACA requirements could lead to significant penalties.

General Liability

The influx of less experienced workers can increase liability risks. It’s advisable to scrutinize your current general liability policy to ensure comprehensive coverage. This step can protect against potential property damage or injury claims stemming from your new hires' activities on the job.

Hiring seasonal help can be a great boon to your business by boosting efficiency and meeting customer demands. However, neglecting to carry the right insurance coverage can leave your business exposed to significant financial and legal risks. Discuss your insurance needs with an agent to fine-tune your policies and ensure adequate protection for your growing team.