Tag: staffing insurance

staffing insurance

Employment Agencies Allow You to Concentrate on Growth, Core Business

If you currently own a staffing agency, you have responsibilities to your clients as well as the individuals you place. Chances are, because of the exposures you face, you’ll need staffing insurance for a number of risks, including liability issues and employment practices concerns. You have several coverage options as an employment agency, and you also know the importance of having coverage in place to protect your interests along with the interests of your company.


PEO programs can free you up to develop growth


You need to have in place a Human Resources department, or you could outsource this responsibility to a professional employer organization (PEO). These duties are becoming increasingly complicated and many business owners choose to outsource these types of issues since they need to be addressed on an ongoing basis. While certain functions are necessary in your daily operations, this can mean dividing your time between being compliant to regulations, and trying to be profitable.


Administrative burdens are a necessary component of the job, but can be a distraction from other more important aspects of your operations. Securing a PEO to handle many of the cumbersome details of the company’s daily operations is often the right move. This means you’ll be able to focus on hiring, and monitoring recruits on their capabilities.


This ensures that your customers are receiving quality, experienced candidates to fill any voids at their companies and keep their companies on track. Your clients will benefit from your attentiveness, while you benefit from your access to programs that help to simplify running your business while you focus on clients and enhancing profit margins. By relieving yourself of having to deal with the business end of running your company, you’re now free to focus on expansion and other valuable goals.


Insurance for the staffing industry


Take note of some important, and necessary coverage options related to running a staffing agency, which includes workers compensation, group health insurance, employee benefits, captive programs, liability coverages, employment practices, risk management & safety, a comprehensive Employee Assistance Program (EAP), and a drug-free workplace.


Risk management and safety inspections can only benefit by keeping you and your employees operating in a safe environment. Running a staffing agency should be a rewarding experience. After all, you’re helping individuals secure work, and companies meet deadlines. Staffing insurance is a key element to maintaining any level of success.


staffing insurance

Find the Right Staffing Firm Insurance Coverage

Staffing firms can be exposed to unique risks. This may particularly be the case when a firm specializes in screening and providing workers ranging from entry-level all the way up to professionals in industries with unique exposures. The consequences of employee compliance and qualifications can be considered when it comes to placing workers in fields like healthcare, finance, or information technology. An experienced provider can help a firm obtain staffing insurance plans with appropriate endorsements and protections against risk.

Obtaining Basic Coverage

The right combination of staffing insurance coverage usually starts with general commercial and professional policies. These plans can help to protect the firm itself and extend down to error and omission coverage for workers placed by the firm. Staffing firms should try to protect against exposures related to the placement of workers, the work performed by these employees, and protection for any additional services that the firm provides.

Filling in Liability Gaps

Several aspects of staffing firm operations can expose these businesses to unique liabilities. A common gap can involve workers classified as temporary and therefore excluded from protection under most general liability plans. Working with an experienced staffing insurance provider can help a firm identify the best policies and endorsements that are necessary to achieve complete coverage.

Employment Practices and The Need For Staffing Insurance

The staffing industry is unique due to the fact that those hired work for outside firms, as opposed to the company that originally hired them. At the same time, these companies have many of the same risks as other types of entities since they share the responsibility of having employees that report to them. Issues in relation to employment practices spring up from time to time which makes the need for staffing insurance a must to address these concerns. The company can also benefit from additional policies that directly relate to contract work and temporary staff employees.


Temporary staffing agency liability concerns

A temporary staffing agency, or any business using the services of a staffing agency needs insurance that covers liability issues. This will provide coverage for claims arising from wrongful acts of a temp employee, or independent contractor, within the scope of the duties of their job. This is the policy that fills any potential gaps in a commercial general liability (CGL) policy.

For example, if a temp agency places a temp worker at a place of business and the temp is responsible for an injury to another person, the agency will be covered by their liability policy but would not likely be covered by a CGL policy.


Employment Practices is vital insurance for this industry

Another important coverage that all companies, including staffing agencies, need to have in place is employment practices, which is needed when an employee claims they were unfairly treated. Allegations range from harassment and discrimination, to unfair hiring practices, as well as any claims that should be investigated by the human resources department.

The properly screening of job candidates is an important step in reducing employment practices claims. It’s important to find the right fit, but this is a process that usually takes time and should be performed in a proper manner. Staffing agencies must work hard to find workers who are, not only qualified for the position, but will successfully assimilate into their new place of employment. Asking the right questions during the initial interview process is key to finding people that are right for the job.

The point of the interview process is to maximize the quality of information obtained from a candidate, which also requires an intimate knowledge of what can and cannot legally be asked of the applicant. By asking the wrong questions, the interviewer can leave the agency open to staffing insurance risks.