What Insurance Does a Small Business Staffing Company Have?

Recommending the right insurance policies to a staffing company benefits you and your client. Additionally, your expertise and deep knowledge of the insurance industry give you the insight to advise on insurance coverage that protects these agencies from their most significant risks. Satisfied and protected clients are likelier to recommend your services and also help you grow your business. 

Know the Common Insurance Needs of a Staffing Company

The unique nature of staffing agencies means they need staffing insurance policies specializing in addressing their most significant liabilities. Although you could suggest several standard business policies, here are some key coverage options for these businesses.

Commercial General Liability

At a bare minimum, your clients should carry a general staffing liability insurance policy. General liability coverage addresses property damage and third-party injuries. Adding commercial property coverage extends this protection if the company owns or rents the property. Limits on the policy should reflect the company’s interest, though a common general liability policy for a business is $1 million per occurrence with a $2 million aggregate.

Commercial property insurance protects the company’s physical assets from fire, vandalism, theft, storms, burst pipes, and explosions. Covered items include computers, furniture, important documents, fencing, landscaping, and signage.

Workers’ Compensation Insurance

Although it is a state-specific law, almost every state requires businesses with more than one employee to carry workers’ compensation insurance. As a staffing company insurance policy, these laws would apply if the company meets the criteria for eligible full-time employees. In many states, staffing companies that act as a broker between a client and recruited talent would not need to provide this coverage.

As an agent, please do your homework in looking at how many employees the staffing agency has and determine how many meet the eligibility criteria for workers’ comp coverage. If the agency fails to provide this benefit, it could face thousands in fines and penalties. Your reputation can take a hit, especially when someone files a professional liability claim against you. 

Professional Liability Insurance

As a staffing insurance policy, professional liability covers any errors or omissions made while providing services. It can help when there are contract errors or meeting obligations, such as filling a staffing request with an individual who still needs to meet the client’s needs, education, or experience requirements.

Employment Practices Liability

Another essential coverage for a staffing agency is employment practices liability. A large part of staffing services is recruiting, interviewing, and hiring individuals. They can also terminate employees. Making a mistake when fulfilling any of these employment duties, such as acts perceived as discriminatory or selective, could lead to expensive and damaging lawsuits. EPL helps with the costs of litigation and defending the agency.

Insurance Recommendations for Your Staffing Company Clients

Staffing insurance isn’t one-size-fits-all. Carefully evaluate the operations and risks your clients face so you can recommend the most comprehensive insurance plan. Both you and your clients benefit when the coverage addresses their needs.

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.