Who’s responsible when a temporary employee breaks expensive equipment or injures someone at a client site?
For temp staffing agencies, the answer isn’t always clear. These firms send workers into different client environments every day, often with limited control over physical conditions or worksite oversight. Without a strong general liability policy — the backbone of a comprehensive temp agency insurance program — just one incident can trigger lawsuits from the client, a third party, or even the worker. If the worker is injured, separate coverage like workers’ compensation would apply.
This article helps brokers explain why general liability coverage should be the cornerstone of every staffing agency’s risk strategy, especially when client-held policies don’t extend to temps.
How Temp Agency Insurance Works Through General Liability
General liability insurance serves as the foundation of a staffing firm’s risk-management strategy. It offers defense and indemnity for third-party claims tied to bodily injury, property damage, or personal and advertising injury, including slander or libel.
But for staffing agencies, these risks don’t stop at in-house operations. Temporary workers go to external workplaces with varying levels of control and oversight. That’s why a policy must go beyond standard coverage.
For example, general liability insurance from World Wide Specialty Programs (WWSP) includes tailored endorsements that extend protection to claims involving contract employees while on assignment. These enhancements are unique to WWSP and vary by carrier, so brokers should confirm details during underwriting.
Additionally, many client contracts require proof of active general liability coverage. A well-structured policy not only manages exposure but also ensures compliance.
Potential Lawsuit Triggers for Staffing Firms
In 2023 alone, U.S. employers reported over 2.6 million nonfatal workplace injuries and illnesses, according to the Bureau of Labor Statistics. When temps are involved, liability questions can become even more complex.
Even with clear contracts, staffing agencies still face numerous liability risks. Here are a few examples brokers can reference when speaking with clients:
- A temporary employee damages expensive client equipment during a shift.
- A visitor trips and falls near a temp’s workstation and files an injury claim.
- A temp makes a social media comment that the client believes harms their reputation.
Many staffing firms mistakenly assume the client’s liability policy covers temporary staff actions. In most cases, client-held CGL policies do not extend coverage to temporary staff sourced from outside agencies — unless specifically endorsed. That misunderstanding can lead to costly gaps in protection.
This is where brokers step in: to clarify the risks and recommend general liability coverage designed specifically for staffing operations.
Supporting Brokers in Reducing Client Risk
Helping clients secure coverage is only part of the job. Great brokers also help them avoid claims by encouraging proactive risk practices.
That starts with encouraging practical safeguards like:
- Reviewing assignment contracts and indemnification language
- Ensuring client service agreements reflect up-to-date liability standards
- Recommending the use of safety manuals and location-specific orientation practices
World Wide Specialty Programs (WWSP) supports this approach by partnering with brokers in a more hands-on way. Our team offers industry insight, contract guidance, and claims expertise rooted in staffing operations.
The result? Brokers aren’t just selling policies; they’re helping clients stay ahead of risk.
Partner With WWSP To Protect Staffing Clients
Staffing agencies continue to navigate diverse worksite exposures and evolving client demands. Brokers who understand how general liability anchors a strong temp agency insurance program can stand out as trusted advisors.
WWSP’s general liability solutions help staffing firms stay protected — on assignment, in court, and at every step in between. Our industry-specific endorsements, underwriting expertise, and commitment to broker support make us more than an insurance provider. We’re a partner in your client’s success.
Contact World Wide Specialty Programs to deliver general liability protection that reflects the real-world risks your staffing clients face every day.
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.