As the owner of an employment agency, you realize the importance of maintaining good temporary staffing insurance. This includes maintaining appropriate amounts of coverage that applies to a number of risks your type of service business is often exposed to. One of the main reasons is that you hire people to work for other companies, but you’re also exposed to allegations of discrimination and harassment issues, much like any other company.
The fact that you send candidates screened by your staff to work at outside companies employing them to perform temporary or part-time work creates liability issues. There can also be potentially significant coverage gaps that may arise as a result of having two different employers involved. Given that there are so many unique issues facing staffing agencies, owners owe it to themselves to obtain appropriate temporary staffing insurance coverage. Perhaps one of the best investments they can make for their company.
Insurance options to consider
A temporary staffing agency is in many ways like most other businesses when it comes to coverage options. There are different types of insurance for a variety of exposures. Temp staffing agencies, as well as their clients, should obtain a commercial general liability (CGL) policy, a temporary staffing liability policy, and an employment-practices liability insurance policy. Unlike a CGL, a temporary staffing liability policy provides coverage for certain errors or omissions of an employee or temporary employee.
A typical temporary staffing liability policy provides coverage for wrongful acts of both employees and temporary employees, so its coverage provides benefit to both the temp staffing agency and any businesses using the services of temp workers. There may, for example, arise circumstances where the temp agency’s client will seek to hold the staffing agency liable for an error made by a temp employee placed by the staffing agency.
Similarly, for the business using temp employees, the same policy provides protection should a third-party seek to hold them liable for an error made by a temporary employee in use for their own business purposes.
When running a business, there is something at stake for everyone involved. Having temporary staffing insurance can provide you with the type of coverage that could prevent you from facing financial ruin, so speak to an agent today.