As business picks up during the summer and holiday seasons, many companies hire seasonal or temporary employees to meet increased demand. Whether you own a restaurant, retail store, landscaping company, contractor, warehouse, or hospitality business, adding staff can help your business grow—but it can also increase your insurance exposures.
Before bringing on seasonal employees, it’s important to review your commercial insurance program to ensure your business is properly protected.
Why Seasonal Employees Increase Risk
Temporary employees often have less experience with your business operations, equipment, and safety procedures. This can lead to a higher likelihood of workplace injuries, property damage, customer incidents, or employment-related claims.
Even if seasonal employees only work for a few weeks or months, they should be included in your overall risk management planning.
Workers’ Compensation Insurance
In most states, seasonal employees must be covered under your Workers’ Compensation policy if they are considered employees under state law.
Be sure to:
* Report estimated payroll accurately.
* Notify your insurance broker if you’re hiring a significant number of temporary employees.
* Maintain payroll records by employee classification.
* Provide safety training before work begins.
Incorrect payroll estimates can result in unexpected premium adjustments during your annual Workers’ Compensation audit.
General Liability Insurance
An increase in customers and additional employees often means more opportunities for accidents.
Review your General Liability policy to ensure your limits remain appropriate, especially if your business experiences:
* Higher customer traffic
* Outdoor events or promotions
* Additional job sites
* Expanded operations
Commercial Auto and Hired & Non-Owned Auto Liability
If seasonal employees drive company-owned vehicles or use their personal vehicles for business errands, deliveries, or client visits, your Commercial Auto policy should be reviewed.
Businesses should also consider Hired & Non-Owned Auto Liability coverage, which can help protect the company when employees use their own vehicles for business purposes.
Employment Practices Liability (EPLI)
Hiring additional employees also increases the potential for employment-related claims.
Employment Practices Liability Insurance (EPLI) can help protect your business from allegations involving:
* Wrongful termination
* Discrimination
* Harassment
* Retaliation
* Failure to hire or promote
Proper hiring practices and employee documentation remain essential, even with temporary staff.
Cybersecurity Risks
Seasonal employees often require access to computers, payment systems, and customer information.
Help reduce cyber risk by:
* Limiting system access to only what’s necessary.
* Using strong passwords and multi-factor authentication.
* Removing employee access immediately after employment ends.
* Providing basic cybersecurity awareness training.
Cyber Liability Insurance can help your business respond to data breaches, ransomware attacks, and other cyber incidents.
Reduce Risk with Employee Training
Insurance is only one part of protecting your business.
Before seasonal employees begin work:
* Review workplace safety procedures.
* Explain emergency response plans.
* Train employees on equipment operation.
* Document all training.
* Encourage employees to report unsafe conditions immediately.
A well-trained workforce can help reduce accidents, improve productivity, and lower claim costs.
Partner with an Insurance Broker Who Understands Your Business
Business needs change throughout the year. Hiring seasonal employees is an excellent time to review your insurance program and make sure your coverage keeps pace with your operations.
At Truska Insurance Agency, we work with businesses throughout Chicago and the surrounding communities to identify potential coverage gaps and develop customized insurance solutions that fit your business—not just at renewal, but year-round.
Whether you’re hiring five seasonal employees or fifty, we’ll help ensure your insurance program is designed to protect your business, your employees, and your bottom line.
Need a commercial insurance review? Contact Truska Insurance Agency today to discuss your Workers’ Compensation, General Liability, Commercial Auto, Cyber Liability, and Employment Practices coverage before your seasonal workforce arrives.
