Your clients in the staffing industry must be extremely conscientious about risk exposure involving the misuse of trade secrets. It’s essential to emphasize the utility of staffing crime insurance that can address loss and liability scenarios centered on stealing trade secrets. Ultimately, it will help these clients with customized solutions to mitigate risk. Be sure to highlight the practical applications of this critical safeguard in your clients’ coverage elections.
Staffing Crime Insurance Can Serve as a Dynamic Defensive Measure
Staffing service providers must work diligently to protect proprietary information that drives their day-to-day activities. Likewise, their ability to operate successfully depends heavily on the connections that they have formed with their clients. Significant work goes into networking and cultivating constructive, rewarding relationships with numerous businesses.
The detailed information they have compiled about their clients may bear commercial value. This information could include essential details such as individual contacts and the types of services these businesses require. Furthermore, agencies put a lot of work into forging professional relationships. Misappropriation of their work product might give other agencies the means and opportunity to take their clients away.
A staffing crime insurance policy can equip agencies with a remedy if theft of information interferes with their operations. Protecting company trade secrets with crime insurance fortifies the value of all the resources agencies invest in building up their business. Likewise, it safeguards their ability to realize the revenue this investment has been generating for them.
Insurance May Protect the Value of an Agency’s Workforce
For staffing agencies, the strength and skills of their team members are foundational to their operating capacity. A serious problem could arise if competitors acquire contact information for all of an agency’s personnel and find out details about their employment that are not commonly known, such as their compensation or benefits. It might arm those competitors to target personnel with compelling offers to come to work for them. Likewise, clients could use this information to bypass an agency and pursue direct hires.
If proprietary information about a staffing agency’s personnel becomes subject to this type of misuse, either through an external security breach or an internal leak, staffing crime insurance coverage could give them a way to recoup their direct damages. Also, should personnel or third parties steal a workflow management program that a staffing company has developed, unauthorized use may be grounds for legal action.
Staffing Crime Insurance Protects Clients’ Trade Secrets
The personnel that a staffing agency assigns to work on a client’s behalf may become privy to that client’s trade secrets. Ultimately, if that personnel divulges intellectual property or other vital information that is not publicly known, the harm to that client and an agency’s liability could be substantial.
Staffing crime insurance helps agencies handle this type of liability scenario. A policy’s proceeds may pay to settle a claim, defend it in litigation, or satisfy a legal judgment against an agency.
Steer staffing agency clients towards crime insurance solutions that feature coverage for claims concerning trade secrets. An insurer that customizes its products for these clients’ industries can help your clients access tailored, cost-effective endorsements.
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.