Professional Liability Insurance for Staffing Agencies

If personnel placed by your employment agency engage in illegal behavior in the workplace or fail to meet a contract’s conditions, you may be held accountable. Professional liability insurance for staffing agencies protects you from expenses associated with legal claims filed against you.

Does Your Staffing Agency Need Liability Insurance?

All staffing firms need professional liability coverage. The three main types of exposure your agency might face are the following:

  • Failure to provide proper, skilled workers to the client
  • Financial loss to the client resulting from work performed by an employee you placed
  • Professional negligence occurring within additional services supplied by your staffing company

What Does Professional Liability Insurance Cover?

This type of insurance provides essential protection if an employee or business sues your company for professional mistakes. It can be quite costly to defend yourself from legal actions, even if your business is not at fault.

Professional liability insurance for staffing agencies┬ácovers court costs and attorney fees. It will also likely cover lost income and any client’s settlements you are required to pay.

The services that staffing agencies offer leave them vulnerable to some significant liability risks.

An employment service business works with employers and employees and therefore has an obligation to both parties. Professional liability insurance can keep your company running while addressing unexpected legal matters.