Managing Your Liability with Temp Employees

Insurance Marketing / Tuesday, January 29th, 2019

As an agency dealing with temporary labor, you may be under the impression that you do not need a comprehensive liability policy. However, there is risks inherent to your company that deal solely with the employees you place during contract work. The only way to truly minimize your exposure in these areas is to obtain a staffing agency insurance policy.

The Limits of General Liability

If you carry a general liability policy, you are only covered in areas involving your property and employees. Contract labor is generally placed off-site, bringing a whole new threat with property, equipment and injury that occurs as a result of the temporary employee.

Scenarios of Application

You might wonder how staffing agency insurance will help. Consider the following:

  • Temp worker exaggerates accounting skills and makes a mistake costing the business a lot of money
  • Temp worker drops a laptop at the client’s location
  • Temp worker mishandles a forklift and damages client’s property
  • Temp worker slips and falls while loading the client’s truck

A comprehensive staffing agency insurance policy would apply to these situations because it is tailored to the off-site nature of your operations. Consider adding the following to your coverage:

  • Breach of duty
  • Errors and Omissions coverage
  • Director and officer liability coverage
  • Workers’ compensation coverage