Planning for Staffing Agency Growth

Staffing agencies play an important role in the modern workforce. When you are connecting top-notch talent with client businesses, you tread in places that traditional companies never go. If one of your referrals misbehaves on the job site, you may find yourself on the receiving end of a costly lawsuit. With the right employee liability coverage, though, you help control risk.

Purchase Coverage

While you can conduct a full background screen of employees you plan to refer to client job sites, you can’t predict how individuals will behave. With employee liability coverage, you safeguard your organizations from costly lawsuits related to employee malfeasance. Talk with an experienced agent to be sure you are purchasing the right coverage for your staffing agency’s needs.

Take Advantage of Related Resources

Good insurance providers have informational resources to help make your job easier. If you aren’t taking advantage of these invaluable tools, you aren’t getting the most out of your coverage. Ask your provider for training and other resources to improve your organization’s business processes.
If you want to grow your staffing agency, you need a strategy for addressing the misdeeds of referred employees. In addition to your screening procedures, employee liability coverage can provide the peace of mind you need to provide competent service to your clients.

Insurance Coverage for Staffing Firms

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.