Here’s what business owners need to know about workers’ compensation and liability insurance when bringing seasonal employees on board.
Why seasonal hiring is on the rise
From amusement parks to holiday pop-up shops, seasonal employment is booming. In fact, more businesses are relying on temporary workers to handle fluctuating workloads without committing to year-round hires. It’s a smart move operationally—but it can open the door to unexpected liabilities if you’re not properly covered.
Do seasonal employees need Workers’ Comp? 
Yes—almost always. Most states require employers to provide workers’ compensation insurance for all employees, regardless of whether they’re full-time, part-time, or seasonal.
Workers’ comp covers:
- Medical expenses if an employee is injured on the job
- Lost wages during recovery
- Rehabilitation costs and, in some cases, disability benefits
Tip: Don’t assume your current policy automatically includes seasonal workers. Check with your insurance provider to confirm that temporary staff are covered—or add a rider if needed.
General Liability Insurance
Hiring seasonal workers also increases foot traffic, training requirements, and potential for accidents—meaning general liability insurance is more important than ever. This coverage protects your business if someone is injured due to your operations or if there’s property damage caused by your employees.
For example:
- A new temp worker accidentally breaks expensive equipment
- A customer slips on a wet floor a seasonal employee forgot to mark
These situations could lead to costly claims if you’re not properly insured.
Insurance Tips When Hiring Seasonal Staff
- Review Your Policy Limits
Make sure your current policy limits are sufficient for the extra workers and increased exposure during your busy season.
- Clarify Worker Classification
Misclassifying workers (e.g., labeling employees as independent contractors) can lead to fines and denied claims. Be clear on how your state defines seasonal or temporary workers.
- Keep Detailed Records
Document hours worked, job responsibilities, and training provided. This helps with accurate premium calculation and liability defense, if necessary.
- Prioritize Safety Training
Seasonal workers may not be familiar with your processes, so provide thorough training to reduce workplace accidents and claims.
- Work with a Local Insurance Agent
Insurance regulations vary by state, so it helps to work with one of our agents who understand your local requirements and industry risks.
Need Help Updating Your Coverage?
We specialize in helping businesses protect what matters most—including their people. Whether you’re hiring your first seasonal employee or managing a large temporary team, we’ll make sure your workers’ comp and liability insurance keep up with your needs.
Get in touch today to review your policy and stay protected all season long.
