Professional temporary staffing agencies experience employee liability exposure that is unique to their industry. It is crucial to identify gaps in standard policies to ensure proper coverage is in place, protecting employees as well as themselves. Agency employees are often located at the client site. These circumstances create challenges that may force the agency to pay full damages out of pocket if they go unaddressed.
Specialized Coverage Policies
Staffing organizations are often incorrectly classified as employment agencies. This error can affect coverage and exclude many day-to-day concerns. Policy modifications may be required for appropriate coverage.
- Commercial general liability insurance covers property claims and third-party bodily injury. Coverage can be extended to include damage caused by a contract employee while at a client site.
- Employee theft/crime policies protect the staffing organization against fraudulent acts or theft committed by the employee while at a client site.
- This can include but is not limited to forgery, unauthorized electronic funds transfers, counterfeit scams or computer fraud.
- Errors and omissions coverage protect the agency from negligence lawsuits brought as a result of financial harm caused to a client.
- Professional liability policies can cover attorney’s fees as well as payment for any judgments if required.
Insurance companies with experience and understanding of the concerns that affect staffing companies can help ensure the proper policies are in place to protect their client and help them flourish.