In all industries, a company’s reputation precedes it. Staffing agencies are no exception. Staffing agencies have a unique role in the business world, where they provide employees to various companies and must network to keep their employees working and their business afloat.
With their unique position, they also have unique risks, including fraud and liability. Staffing general liability insurance does not just protect a business against lawsuits but can also help the company in the event of a damaged reputation.
What Is Staffing General Liability Insurance?
General liability insurance protects all businesses against broad claims of bodily injury and property damage. Companies invest in public liability insurance to help cover medical expenses, attorney’s fees, and property damage costs due to their business’s operations.
In the staffing industry, agencies work with various clients over multiple industries. Each industry has its own risks, and while your employees may temporarily work at a different job site, your company still has legal obligations. For instance, if a temporary employee damages property or defrauds another company, you may have to pay the legal fees, settlement costs, or both.
Likewise, suppose a business suffers reputation damage because of the acts of an employee or any form of libel or slander. In that case, general liability can help defend the company.
Reputation Risks for Staffing Agencies
Reputation means everything in the business world, and staffing agencies have various risks that could harm the company if not handled properly. Discrimination allegations, for example, can cause reputational harm. While staffing agencies are responsible for their practices, the courts may also find them accountable if they know of a client’s discriminatory hiring practices and do not take corrective measures within their control.
For example, suppose a client wants an employee removed from a job because of his or her race, sexuality, or age, and the staffing agency obliges. In that case, he or she may need staffing general liability insurance to defend against discrimination allegations.
Staffing agencies cannot always control their employees when they are at another job site. A client may file a claim against the staffing agency for temporary worker misconduct. Any legal dispute with the client can also harm the agency’s overall reputation. Having general liability insurance not only helps defend the agency’s name but also shows a responsibility to liability that most potential clients can respect.
The Vital Role of Liability Insurance in Reputation Recovery
Without staffing agency insurance, a company may struggle to rebuild its reputation. Staffing agency general liability insurance can help pay for the legal defense expenses and any settlements or court judgments.
Clients tend to have more reassurance when they know that a company has a general liability policy because if something does happen, they know the agency will be able to cover its liabilities.
Liability insurance can help a company rebuild after it takes a hit to its reputation. With insurance, staffing agencies may find it easier to rebuild or to re-establish trust with clients.
Choose Staffing General Liability Insurance for Staffing Agencies
Help your clients understand the importance of their reputation and how staffing general liability insurance can help them protect it. When a company has adequate insurance, it protects its bottom line and its reputation. Call World Wide Specialty today to learn more about staffing agency liability 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 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.