5 Measures to Prevent Contract Disputes

Contract disputes are a topic that no one likes to discuss, especially employers and staffing agencies. However, staffing agencies must contend with the possibility of these liabilities. Contract disputes are a risk that employment agencies need to prevent and protect against. What is a contract dispute, and how can staffing professionals mitigate this risk?

Steps to Prevent Contract Disputes

If your clients are wondering how to prevent contract disputes, connect them with staffing abusive acts liability insurance and give them the following five tips.

Ensure Your Clients Have the Right Staffing Abusive Acts Liability Insurance

Insurance agents can help their clients minimize liability and avoid contract disputes by providing adequate coverage. Insurance shields staffing agencies from liabilities such as potential litigation that can stem from a contract dispute. In addition to insurance, your clients can reduce the risk of a conflict by focusing on including language that specifically identifies each party’s responsibilities.

Always Ensure That All Parties Complete the Contract on Time

Your client should also ensure that all parties entering the contract promptly complete it. Sometimes, delays can lead to miscommunication, and miscommunication can lead to disputes. To prevent this, the contract completion should have precise deadlines for every party involved. Failure to meet these deadlines will set a dangerous precedent in the relationship between an employer and the agency — and this can lead to disputes.

Do Not Leave Important Details Open to Interpretation

An effective contract must also be explicit in the details it contains. If phrasing is too ambiguous, it will leave room for confusion, and confusion is often the culprit for a contract dispute. Rather than including a clause requiring a staffing agency “fill at least 75% of staff orders,” the contract should stipulate the exact minimum number of staff members the agency must provide per order. This eliminates any confusion that may stem from indicating an unclear number.

Include a Plan for Contract Dispute Mediation

Unfortunately, despite both parties’ best efforts, disputes may still emerge from a contract. To plan for this possibility, every contract should include a clause outlining the protocol for mediating a dispute. A neutral third party should oversee this process and guide the employer and the agency to a suitable solution. If a settlement is necessary, the liable party must comply.

Offer Staffing Abusive Acts Liability Insurance to Your Staffing Clients

Contract disputes are just one of the many liabilities that staffing abusive acts liability insurance may cover. It’s imperative to help your clients get the coverage they need before a risk like this comes to fruition. The right insurance can empower your staffing agency clients to take control of their contracts and prevent disputes.

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.