Employee theft is more common than you may think; according to research, businesses lose $50 billion annually from insiders stealing from or committing fraud against their employers. Staffing agencies face unique challenges because their clients’ property is also at risk.
To protect their assets, companies must establish mitigating policies and contingencies. Insurance agents can help by offering staffing crime insurance, which pays for stolen property and shields staffing agencies from liability.
Staffing Crime Insurance for Agencies
The most straightforward form of employee theft is stealing company property or funds. Examples are a worker taking home ink cartridges or money from a cash register. However, there are more subtle and complex ways employees may take advantage of employers.
Proprietary information is invaluable to businesses, and the distribution of trade secrets can significantly harm their ability to compete. Data breaches are also incredibly dangerous for companies, as they can damage the brand’s reputation and put customers at risk of identity theft.
Fortunately, staffing company insurance provides several types of coverage:
- Kidnap expense
- Personal identity information misuse
- Security breach
- Trade secret theft
- Defense and legal liability
The right policy can save companies a great deal of money. In addition to replacing stolen equipment and funds, staffing crime insurance can safeguard corporate reputations. It’s not a good look when a temporary worker commits a crime, but quick action to rectify the issue shows the agency prioritizes clients’ safety.
Employee Theft: A Threat to Staffing Agencies
High turnover is a common issue for staffing agencies; temp workers often leave due to the stress of the job or because they found full-time work elsewhere.
Unfortunately, managing an ever-changing workforce can make agencies vulnerable. Bad actors may specifically target recruiters, and staffing agencies are gold mines for cybercriminals looking for data.
When an individual placed by a staffing agency commits a crime against the client, the responsibility to make things right falls on the agency. Clients trust that recruiters vet employees beforehand, and such an incident breaks that trust. Agencies must cover recovery costs to repair that trust and their reputation, which can be a financial burden without the help of insurance.
Policy Customization for Staffing Agency Needs
Insurance agents can help staffing agencies protect themselves and their clients. The key is understanding your insured’s unique challenges. For example, if an agency works with a niche industry, it will need staffing crime insurance that covers vulnerabilities particular to that industry.
You can also help your customers save money by tailoring policies to their needs, ensuring they only pay for coverage that benefits them. You can adjust policies for optimal protection as their businesses grow and change.
Staffing Crime Insurance Appeals to Clients
Unfortunately, all companies need to worry about employee theft. The good news is that there are ways to recover from such crimes.
Staffing crime insurance safeguards staffing agencies against this breach of trust and provides their clients with peace of mind. By offering these policies, you can better serve your insurance clients and attract prospects looking for this coverage.
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.