Hiring Summer Workers? What to Know About Insurance

As the warmer months approach, businesses often experience a surge in temporary employment needs. Take, for example, a small construction firm that expands its team by hiring additional roofers in response to an increased number of summer projects. While these extra hands are invaluable, they come with added responsibilities, especially when it comes to insurance coverage. In this post, we delve into key insurance considerations that businesses must keep in mind when hiring seasonal employees.

Workers’ Compensation

Workers’ compensation insurance is essential, mandated by every state except Texas. This extends to seasonal employees; ensuring coverage is crucial. Without it, your business could face costly claims and legal risks in the event of a workplace injury.

General Liability

When hiring less experienced workers for the summer, your liability risks may increase. It's prudent to review your general liability policy to ensure it provides sufficient coverage against potential claims for accidents or property damage during the busy season.

Health Insurance

Under the Affordable Care Act, businesses with 50 or more full-time employees are required to offer health coverage, which can include seasonal employees working 30 hours per week or 130 hours per month. It’s a critical component to consider when planning your workforce.

Employment Practices Liability (EPLI)

From onboarding to termination, employment processes entail risks. Employment Practices Liability Insurance (EPLI) offers protection against claims of wrongful termination, discrimination, or wage disputes, which can arise more frequently with a churn of seasonal staff.

In conclusion, while hiring seasonal help can significantly boost productivity during peak months, neglecting the appropriate insurance coverage can leave your business vulnerable. It’s essential to discuss your needs with an insurance agent to evaluate your current policies and make necessary updates. Protect your business by ensuring comprehensive coverage for all employees, temporary and permanent alike.

🛠️ Fast Fact for Tri-State Employers:

With summer hiring surging across New Jersey, New York, and Connecticut, businesses must remember: seasonal employees are still covered under workers' comp laws. Failing to update your policies could lead to fines or uncovered claims—especially in high-risk industries like construction and landscaping.