Hired and Contracted Farm Labor: What Workers’ Compensation Gaps Could Cost You at Harvest Time

Harvest season can put every resource on a farm to the test, including your insurance coverage. Labor needs spike when you hire temporary workers or rely on independent contractors, and inadequate workers’ compensation coverage can expose you to significant financial liability. Don Ramatici Insurance, A HUB International Company can help you address the gaps in your farm insurance before the season begins.

Understanding Hired and Contracted Farm Labor

Hired farm labor often refers to workers you bring on directly as employees, typically on a seasonal or temporary basis. Contracted labor generally refers to workers provided through a staffing agency, labor contractor or another business entity. The distinction matters because your workers’ compensation policy may cover one group and leave the other without coverage, depending on how it is written. Requirements for agricultural employers also vary by state, so your obligations may differ depending on where your farm operates.

Workers’ Compensation Gaps: Where Risks Arise

Gaps tend to appear in the following areas:

• Uninsured contractors—Individuals you hire directly who are assumed to have their own coverage, but who do not
• Midseason hires—Seasonal employees added without updating your policy
• Third-party labor providers—Workers sourced through an agency with lapsed or inadequate coverage
• Misclassified workers—Those who fall outside your policy’s definition of employees

When a bodily injury occurs, and coverage is missing, you may face medical expenses, lost wage claims and legal costs paid entirely out of pocket.

Closing Coverage Gaps Before Harvest

Start with a policy review before harvest begins. Ask your agent to confirm how your current policy defines covered workers and whether hired and contracted labor is explicitly included. If it is not, an endorsement or separate coverage may be needed. It’s also crucial to verify certificates of insurance from any labor contractors before they set foot on your property.

Review Your Coverage This Season

Harvest is not the time to discover a coverage gap. Contact Don Ramatici Insurance, A HUB International Company before the season ramps up to review your farm insurance and workers’ compensation coverage.

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.