Employment agencies are in a unique position because they serve as a conduit between workers and employers, filling gaps in staffing for businesses. This type of role comes with some risk exposures, making insurance for employment agencies an essential investment. Some agencies may need to be made aware of the right coverage solutions. There are a few key types of policies to consider when you build insurance packages for a staffing agency.
Exploring Insurance for Employment Agencies
Most employment agencies need to have general liability insurance and commercial property coverage at a minimum. Still, other coverage options may be necessary depending on the types of roles that the company fulfills.
Understanding Professional Liability Insurance
Professional liability coverage protects an agency in case of a claim of malpractice, negligence, or professional errors in the staffing business. Remember that the agency is liable for the performance of those placed with clients, so any deliberate violations or oversights in their background checks can lead to professional liability claims.
Considering Employment Practices Liability Coverage
Staffing agencies are at greater risk of employment practices liability claims than some other businesses. If prospective workers feel they suffered discrimination, they may file a claim. With so many people passing through these agencies, this risk is significant even with the best employer practices. Wrongful termination is also a concern because temporary workers may feel slighted if replaced, leading them to pursue a wrongful termination claim in some instances.
Choosing General Liability Insurance
An employment agency faces severe threats of liability issues because they often have many people onsite at any given time. Furthermore, the risk of reputational damage and copyright infringement in doing business should encourage every staffing agency to invest in sufficient general liability coverage for the firm. When you consider how to get an employment agency the best insurance to fit their needs, understand their liability exposures first.
Encouraging Workers’ Compensation Coverage
Even for staffing agencies that consider their placed workers independent contractors, workers’ compensation coverage is essential. Remember that every employee you have on staff in the office that helps you fulfill client contracts needs that coverage in case of an injury. Many employment agencies have fewer employees than the state requires for workers’ compensation coverage, but it is a substantial investment.
Evaluating Un-Owned and Hired Vehicle Coverage
If an employment agency requires any workers to conduct business from their personal vehicle, including as delivery drivers, un-owned and hired vehicle coverage is necessary in case of any accidents during their work hours. Accident claims, including personal property damage and medical costs, can add up quickly and be devastating to a small employment agency otherwise.
Building the Right Insurance for Employment Agencies
Understanding the different coverage options is the first step in helping your clients get their needed coverage. Create a comprehensive coverage package that addresses each need to ensure sufficient insurance for employment agencies in your business book.
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.