As a staffing agency, you are exposed to a number of risks that most other companies don’t have to deal with. For instance, if an in-house HR department makes a bad hire, the company lets the bad hire go and moves on. However, if your agency makes a bad hire, the company sues your firm for monetary losses that may include all the fees they paid in the beginning. The end result may be financial devastation for your firm. To protect yourself from major financial loss, invest in vendor management services insurance.
An agency that specializes in staffing firm insurance can guide you toward the best policy for your needs. Each staffing agency specializes in different industries, which means that their insurance needs will vary considerably. While your firm might benefit from liability coverage for Directors and Officers, other firms that specialize in the placement of part-time employees might not. The best way to ensure that you’re covered for exactly what you need, and that you don’t waste resources on coverages you don’t, is to work directly with a knowledgeable insurance agent.
Even if you do your best to provide the best hires and to meet industry regulatory standards, you may find yourself faced with a claim. Protect yourself from financial loss with a comprehensive vendor management services insurance policy.