Hiring Seasonal Workers? Make Sure Your Business Insurance Is Updated

Hiring seasonal workers can be a smart move for businesses during peak periods, but it also brings new responsibilities. Your company may need to pay particular attention to its insurance needs as they pertain to seasonal workers, as such staffing changes could impact legal requirements and risk levels. Whether you’re in agriculture, retail, hospitality or another seasonal industry, properly updating your insurance can be critical.

Starting With Workers’ Compensation Coverage

Workers’ compensation insurance is often required regardless of industry. For example, in California, even businesses with only a single employee are required to carry coverage. This includes seasonal and part-time workers. Retaining an appropriate policy can help staff manage medical expenses, lost wages and rehabilitation costs if they’re injured on the job. There’s no minimum employment duration for eligibility, so coverage must be in place from day one.

Failing to update your policy to reflect seasonal hires can result in denied claims, legal penalties or even lawsuits. Misclassifying seasonal workers as independent contractors to avoid coverage is another common pitfall that can lead to serious legal consequences. A qualified insurance professional, such as those at Ranch and Coast Insurance Services, can help you tackle these situations and fulfill your obligations.

Liability and Other Coverage Considerations

Beyond workers’ compensation insurance, hiring seasonal staff may also require updates to other aspects of your business’s insurance package. Consider how additional staffing may impact coverage needs regarding the following:

• Liability insurance—If your seasonal staff interact with customers, more employees typically means greater risk exposure.

• Auto coverage—Anyone who will be operating a company vehicle should be listed on your commercial auto insurance policy, even if they’re a seasonal employee.

• Business interruption insurance—Payroll obligations grow with additional seasonal hires, so your policy should reflect that.

When to Notify Your Insurer

Don’t wait until your policy renews. Hiring seasonal workers represents a sizable change to your overall business operations, as additional staff and foot traffic can significantly impact your coverage needs and risk profile. You should notify your insurer immediately to ensure your coverage is accurate and effective.

Learn More

If you operate a business with seasonal hires in Rancho Santa Fe, CA , contact Ranch and Coast Insurance Services today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.