Retaliation has topped the EEOC’s list of workplace claims for years — and it’s not showing signs of slowing down. For staffing firms, where employees report to more than one supervisor across different workplaces, that risk multiplies. When a temp reports a problem like discrimination, harassment, or safety violations, it’s not always clear who’s responsible, but the legal exposure often lands squarely on the staffing agency.
For insurance agents working with staffing firms, understanding this risk is essential. That’s where employment practices liability insurance (EPLI) comes in.
Why Staffing Firms Are Vulnerable
Staffing firms operate in a dual-role dynamic. Legally, they’re the employer. Functionally, the day-to-day oversight typically belongs to the client.
Under joint employment frameworks, such as those recognized by the National Labor Relations Board (NLRB), both entities can be held liable if they share authority over employment terms like scheduling, supervision, or discipline.
Even though a federal court vacated the NLRB’s expanded joint employer rule in early 2024, joint liability still exists under multiple legal doctrines. A client supervisor’s retaliatory action can pull the staffing firm into a claim even when the agency had no direct involvement.
In other words, staffing firms inherit responsibility without full control. That structural disconnect makes them prime targets for retaliation lawsuits. Without the right EPLI in place, they could be left exposed.
How Employment Practices Liability Insurance Helps Mitigate Risk
Generic EPLI policies rarely account for the realities of staffing environments, including rotating placements, multiple reporting lines, and evolving client relationships. What’s needed is policy language designed for staffing.
World Wide Specialty Programs offers employment practices liability insurance designed specifically for staffing environments. Below are the key features.
- Separate limits and deductible options
- Duty to defend, with broadened definitions of a “claim” to help trigger coverage more reliably
- Coverage for wrongful business environments, even if the claimant isn’t a direct employee
- Protection for both in-house staff and placed employees
- The ability to add client companies as insureds, per contract — an uncommon but crucial feature in staffing-specific policies
It’s EPLI that moves with your client’s workforce and adapts to how staffing actually works.
Agents Must Guide Their Clients
Many staffing firms assume their EPLI policy is comprehensive. In practice, coverage gaps are common, especially for claims that occur off-site or involve third parties.
Agents can deliver real value by asking strategic questions.
- Does the policy respond to claims at client locations?
- Are vendors or contractors included in wrongful business environment allegations?
- How does the policy address liability in joint supervision scenarios?
- Are defense costs paid within policy limits or separately?
World Wide further supports EPLI clients with HR Cares, an online risk management platform that helps staffing firms manage employment issues before they escalate.
EPLI Is a Must-Have in Today’s Workforce
Retaliation claims don’t just show up in legal filings. They surface in fractured relationships, strained compliance audits, and reputational damage that can outlast any lawsuit.
That’s why staffing-focused employment practices liability insurance is no longer just a smart option. It’s a line of defense your clients can’t afford to go without, especially when today’s workplace looks less like a single office and more like a network of shared responsibility.
Contact World Wide Specialty Programs today to learn how you can deliver EPLI that meets staffing clients where they are and gets ahead of where employment risk is going next.
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.