As a go-between between employees and employers, staffing agencies have two sides of the coin to consider. If a potentially liable situation unfolds, proper temporary staffing agency insurance is vital to have. Depending on the staffing services provided, this insurance may need to be personalized to cover all potential risk areas.
While the coverage needed may depend on the type of business operations, most staffing agencies should plan on having general liability and professional liability at the minimum. Regardless of the business, general liability is typically already purchased since it covers a range of potential issues associated with operating a business. Professional liability provides coverage for negligence or malpractice claims, such as a temporary employee not following industry guidelines.
Extra Coverage Options
Each unique business needs to determine its own potential risks. Common temporary staffing agency insurance add-ons include:
- Workers Compensation: Covers potential injuries on the job.
- Employment Practices: Covers costs related to a lawsuit filed by employees or government entities.
- Business Personal Property: Covers potential damage to property essential for operating the business.
- Commercial Umbrella: Increases coverage for general liability claims, such as an auto accident.
Operating a staffing agency comes with a range of potential issues, so it is important to do the research and get the right insurance coverage.