Staffing Employment Practices Liability Insurance 

From Fortune 500 companies to small local firms, they all rely upon staffing firms for their business needs. As a staffing firm, when you introduce your employee to another workplace there are inherent risks. As the employer of record you are responsible for their safety – and that extends to employment-related practice matters.

The NLRB recently issued a final rule that reinstates the 2020 standard for joint employer status. The rule narrows the meaning of “essential terms and conditions” to wages, benefits, hours of work, hiring, discharge, discipline, supervision and direction.

What Does this New Standard Potentially Mean for Staffing Firms?

Businesses should assess their contracts, operations, and relationships to clarify potential joint employer liability and structure arrangements appropriately. Also, having the proper Employment Practices Liability Insurance coverage in place could result in significant risk transfer and mitigation.

PHLY's EPLI Policy

Our Employment Practices Liability insurance is designed to protect staffing firms against claims brought by an applicant or employee for allegations, including but not limited to discrimination, sexual harassment, and wrongful termination. This policy, designed specifically for staffing services, provides coverage for applicants, a staffing firm’s in-house employees and, of course, clients are added as insureds (pursuant to your agreement with your clients), not just “additional insureds,” on our policy.

Highlights:

  • Individual Policy – separate limits and deductible
  • Insured Includes the Clients of the Staffing Service pursuant to your agreement with your clients
  • Coverage extends to the “placed employee” of the temporary staffing firm
  • Defendant coverage for a client company of the insured
  • Broadened Definition of a Claim
  • Coverage for Employment Practice Acts
  • Coverage territory is worldwide for all named insureds domiciled in the USA

 Submission Requirements:

  • World Wide Staffing Industry Insurance Application
  • Client Service Agreements/Contracts
  • Currently Valued – 5 Years’ Carrier Loss Runs
  • Copy of Employee Manual or Employee Handbook                                                                                                                                                      

Visit Website: https://www.phly.com/