As the owner of a staffing organization, you face unique liability risks because of the nature of your business. Since your company helps connect employers with employees, you have obligations to both entities. To protect your business from legal claims, you should secure the right insurance for temporary staffing agencies.
You have additional risks in your field because the employees you place work for other parties, creating possible liability due to the actions of others. We have outlined some of the essential coverage types you may need for your staffing business.
Professional Liability Insurance
This type of errors and omissions insurance safeguards your business when liability issues arise related to the three primary exposures of the staffing industry:
- The employee fails to meet the contract conditions on time.
- An employee you place lacks the necessary skills to complete required job tasks.
- You fail to uphold regulations related to your services and the industry.
General Liability Policy
General liability insurance is a standard plan that all businesses should have to minimize potential losses related to lawsuits. This coverage protects against incidents like:
- Property damage
- Third-party injuries
- Copyright infringement
Workers’ Compensation Coverage
Workers’ comp helps mitigate the costs when employees get hurt while performing job tasks. State laws require this insurance but can be confusing when it comes to temporary employment agencies. To ensure you have adequate coverage, consult with an experienced agent.
Accidents and mistakes happen. Protect your company from lawsuits and potential financial loss with specialized insurance for temporary staffing agencies.