Why Staffing Agencies Need Employment Practices Liability Insurance

Why Your Agency Needs Employment Practices Liability Insurance

Why Staffing Agencies Needs Employment Practices Liability Insurance

Staffing agencies face unique employee-relations issues and exposures due to their candidates being placed under the direction of their clients, rather than direct supervision from the agency that employs them. Typically, if an employee works for a temporary staffing agency and files an employment practices liability claim, both the temporary staffing agency and the company where the employee works or worked can be sued.

So what will Employment Practices Liability Insurance do for your agency? This type of insurance is a policy intended to cover most employment-related lawsuits that a company may face. The most common are wrongful termination, discrimination, and sexual harassment. However, Employment Practices Liability covers a broad spectrum of other issues that can affect staffing agencies, such as:

  • Wrongful failure to employ or promote
  • Wrongful deprivation of a career opportunity
  • Wrongful demotion or negligent evaluation
  • Wrongful discipline
  • Employment-related misrepresentation
  • Employment-related libel, slander, humiliation, defamation, or invasion of privacy

If you are asking yourself the question “Does my staffing agency need Employment Practices Liability insurance?” chances are it probably does. Unfortunately, with the recent economic downturn, candidates are hard pressed for jobs and quick to place blame if terminated. According to some reports, wrongful termination lawsuits are becoming more common, and that isn’t likely to change any time soon.

World Wide Specialty Programs has always had a singular purpose – to design, develop and provide staffing insurance products for the staffing industry. Working with over 2,000 insurance brokers nationwide, we know the staffing industry better than anyone, and can provide great options for your staffing industry insurance needs. Our Employment Practices Liability policy, designed specifically for staffing services, provides coverage to the staffing firm for their in-house employees and for their contract, (temporary employees) placed with clients who are subject to the client’s workplace environment. Contact us today for more information about our staffing agency insurance solutions. (877) 256-0468.