How To Protect Your Staffing Agency From Liability

Staffing Agency

Staffing agencies are prone to many liability risks because of the services they provide. Since these businesses serve as the liaison between employees and employers, they have obligations to each side. If a claim is filed by either party, the staffing agency can find itself in the middle of a costly legal battle. It’s critical to protect your agency and employees from liability with a comprehensive liability insurance package.

What Coverage Should the Liability Package Include?

Insurance for staffing agencies should include three main areas of coverage to protect against liability claims.

  • Professional liability – This insurance protects your business from claims of negligence or mistakes against your employees while performing professional services. This includes placing an unqualified employee in a position or failing to meet certain contract conditions.
  • General liability – This coverage protects against liability issues that occur during business operations, such as property damage, injuries to third parties and copyright infringement.
  • Workers compensation – This insurance is critical to protect your employees if they are injured on the job. The policy pays the medical expenses and compensates for lost wages. The majority of states require some type of workers compensation, but it’s important to make sure the requirements are sufficient for your business.

Because of the unique challenges staffing agencies face, you must choose a comprehensive policy to protect your investment.