3 FAQ Regarding Staffing Industry Insurance

Staffing industry insurance is a group of business policies for agency owners to protect their assets from a range of employment risks that are particular to these agencies. Staffing agencies face unique risks regarding their specific operations. Therefore, agency owners must choose policies that work for their business, but insurance standards are required, such as general liability and commercial property coverage. Obtaining staffing industry insurance is vital for your clients’ success, and it is helpful to prove to your clients that you have a strong understanding of the staffing industry.

Typically, staffing agencies face a unique set of risks, but there are also cases where additional exposures are present based on specific operations. It is in your best interest to emphasize your industry experience, be prepared to identify risk exposures, and recommend the appropriate staffing insurance to protect your clients.

Your clients will be seeking out the best staffing industry insurance. Since staffing agencies come in all sizes and serve just about every industry, securing the right insurance for staffing agencies may not be a simple task. Agency owners must identify their risks and partner with insurance professionals who understand the industry to ensure they get the coverage they need for their particular operations. You can also help to keep overall insurance costs down by assisting owners in identifying best practices and establishing safety programs.

Three Frequently Asked Questions about Staffing Insurance

Are temporary employees independent contractors?

Temporary employees paid by the agency are not legally considered independent contractors since the agency pays them an hourly wage, doesn’t control their work situation, and typically receives benefits. Therefore, these employees are eligible for unemployment, must be paid overtime, and should be covered by workers’ compensation insurance.

Do staffing agencies have to provide healthcare?

According to the Affordable Care Act (ACA), agencies with more than 50 full-time employees must provide healthcare. The ACA and IRS’s definition of full-time employees are individuals who work an average minimum of 30 hours per week over the course of a month, or at least 130 hours in a calendar month.

How can staffing agencies reduce workers’ compensation insurance costs?

Training in safety measures will help keep employees safe while also reducing workers’ comp claims and lowering the cost of the insurance price. This is especially helpful for temporary staffing agencies as they might place workers with other companies. The temporary employee is still technically considered the staffing agency’s employee; therefore, the agency owner is responsible for their safety.

About World Wide Specialty Programs

For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage, we have available to protect your staffing business, give us a call at (877) 256-0468 to speak with one of our representatives.