We have seen an uptick in questions and issues pertaining to hiring and maintaining staff in what is clearly a tough employment market for business owners. There are many ways that the labor shortage impacts businesses of course but the insurance impact can be easy to miss. We wanted to share some thoughts on why this is occurring, how it can impact liability concerns and steps you can take to mitigate that risk. The past year has seen labor shortages across industry lines. According to a recent study from the Society for Human Resource Management, nearly 90% of businesses are having a hard time filling open positions. These shortages have resulted from various factors, many of which are related to individuals reevaluating their employment priorities due to the COVID-19 pandemic. Such shortages can carry numerous consequences for businesses. Specifically, a depleted workforce increases the likelihood of current employees being overworked and employers having to hire inexperienced or less qualified workers to fill available positions. Together, these issues can cause employees to be prone to making mistakes or getting involved in accidents on the job—thus creating elevated business liability risks. With this in mind, it’s critical for employers to do what they can to mitigate labor shortages and related liability concerns. Keep reading to better understand the factors contributing to the ongoing labor crisis, how employee shortages impact business liability exposures and steps employers can take to help minimize these workforce concerns. Issues Contributing to the Labor Crisis At the initial onset of the COVID-19 pandemic, a significant number of workers lost their jobs, resulting in record-high unemployment rates. As the economy reopened and job availability returned, however, many individuals reassessed their employment arrangements and opted to stay out of the workforce.