Multi-employer worksites such as construction projects, warehouses, and manufacturing facilities present unique challenges for staffing agencies. When multiple companies share responsibility for workplace safety and operations, liability questions quickly become complicated. For insurance agents guiding staffing clients, one issue rises to the top: liability. At multi-employer worksites, the right staffing liability coverage makes the difference between a costly dispute and a protected placement.
The Occupational Safety and Health Administration (OSHA) also treats staffing agencies and host employers as joint employers of temporary workers, meaning both are responsible for protecting workers under the OSH Act. That joint responsibility raises the stakes for liability when incidents occur on shared jobsites.
What Makes Multi-Employer Worksites High Risk?
Unlike single-employer environments, multi-employer worksites involve overlapping responsibilities between staffing firms, host employers, and subcontractors. Under OSHA’s Multi-Employer Citation Policy (CPL 02-00-124), more than one employer can be cited for the same hazard. OSHA defines four potential roles in these situations: creating, exposing, correcting, and controlling employers. A staffing firm may be considered an “exposing” employer if its worker is at risk, even when it did not create the hazard.
Common exposures include:
- Workplace accidents: Temporary employees injured while working alongside a client’s workforce
- Property damage: Equipment or facility damage caused by a temporary worker, leading to disputes over responsibility
- Third-party injuries: Non-employees injured due to combined operations at the worksite
- Unclear safety protocols: Confusion over who provides training, enforces safety rules, or supplies protective equipment
For example, say a temporary worker is injured on a construction site due to improper scaffolding. The contractor who installed the scaffold may be the creating employer, while the staffing agency is the exposing employer. OSHA evaluates who knew — or should have known — about the hazard and what steps each employer took to protect workers.
Key Insurance Coverages That Address Staffing Liability
A standard commercial general liability policy covers third-party bodily injury, property damage, and personal or advertising injury. It is the cornerstone of protection for staffing agencies placing employees at client sites, helping cover claims and legal defense when liability is disputed.
Additional critical coverages include:
- Workers’ compensation insurance: Pays medical expenses and lost wages for injured temporary employees.
- Professional liability insurance: Protects against claims that a staffing agency failed to vet or place qualified employees properly
- Employment practices liability insurance: Responds to allegations of discrimination, harassment, or wrongful termination tied to temporary assignments (but not job-site injury claims)
Together, these coverages create a layered safety net for staffing agencies operating in complex, multi-employer environments.
Practical Risk-Management Strategies for Staffing Agencies
Insurance is only part of the solution. Agents can guide clients toward stronger liability protection by recommending proactive risk-management practices:
- Clear contracts: Define training, supervision, and equipment responsibilities in writing to avoid disputes.
- Worksite inspections: Regularly review safety practices at client locations to ensure compliance.
- Joint safety programs: Encourage staffing firms and host employers to collaborate on training and enforcement.
These strategies reduce the likelihood of costly claims and position agents as trusted advisors.
Protect Your Staffing Agency From Costly Liability
Multi-employer worksites expose staffing firms to risks that standard policies may not fully address. With the right combination of general liability, workers’ compensation, and supplemental coverages, staffing agencies can operate confidently in these challenging environments. By partnering with World Wide Specialty Programs Insurance, you can provide your clients with specialized protection built for the staffing industry.
FAQ for Multi-Employer Worksites
How does insurance protect staffing agencies from liability at multi-employer worksites?
Insurance provides financial protection when responsibility for an accident, injury, or property damage is unclear. General liability, workers’ compensation, and professional liability policies help cover claims, legal fees, and settlements.
Why are multi-employer worksites hazardous for staffing agencies?
Overlapping responsibilities, OSHA’s multi-employer rules, and unclear training or safety oversight make it difficult to assign responsibility when accidents occur.
What role does workers’ compensation play in protecting staffing agencies?
Workers’ compensation ensures that injured temporary employees receive benefits, reducing the chance of lawsuits against staffing firms.
How can insurance agents help staffing clients reduce liability?
By reviewing contracts, confirming adequate insurance coverage, and recommending risk management practices that align with OSHA requirements.
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 are 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.