Does Business Insurance Cover Seasonal or Temporary Holiday Workers? 

Hiring seasonal or temporary workers during the holidays can expand your capacity and keep operations running smoothly, but it also expands your liability exposure. The potential gap between what your policy covers and who is on your payroll can carry significant financial consequences if an injury or incident occurs.

What Coverage Applies to Temporary Workers

Workers’ compensation is one of the most critical policies to review before bringing on holiday help. In most states, including Indiana, it is required for employers with a certain number of employees, including short-term and seasonal hires. General liability insurance and commercial auto insurance may also respond to third-party claims involving temporary workers, depending on how the policy defines covered persons.

Key Questions to Ask Before You Hire

Before your first seasonal employee starts, review these coverage considerations with your agent:

• Does your workers’ compensation policy automatically include temporary and seasonal workers?
• Are your coverage limits adequate for a larger workforce?
• If you use a staffing agency, who is responsible for providing workers’ compensation?
• Does your general liability policy cover incidents involving leased or temporary staff?
• Will your business owners policy (BOP) need to be updated to reflect increased payroll?
• Do you need to add new employees as insured drivers to a commercial auto policy?

When Staffing Agencies Are Involved

Staffing agencies often carry their own workers’ compensation coverage, but that does not automatically eliminate your exposure. Depending on the arrangement and your state’s rules, you may still share liability.

Make Sure Your Coverage Keeps Up

Seasonal hiring is a routine business decision that deserves a coverage review before the rush begins. Contact Letson Insurance Agency Inc. today to review your business insurance policy.

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.