Temporary staffing agencies have long supplied qualified workers to their clients’ businesses, generally for limited periods of time, in order to help a client supplement his or her workforce or to fill temporary openings. Individuals enlisted to clients are employees of the placement service and not the client. The client however provides direct supervision of any temp personnel while they’re at that client’s worksite.
Temporary staffing services may provide bookkeepers, computer/IT professionals, hospitality workers, janitorial workers, light industrial workers, unskilled manufacturing or warehouse workers, clerical workers, and even business professionals. Since the agency must retain responsibility and liability for the actions of those employees even while they are at client worksites, they need temporary staffing insurance to deal with the possibility of claims.
Temp employees have rights that also need protecting
In addition, your agency remains responsible for protecting the temporary employees from workplace injuries, illnesses and discrimination. Most business insurance policies are written specifically to cover property damage, bodily injury, crime and other losses that occur on your business premises. You’ll need temporary staffing insurance policies that protect your financial interests and your employees wherever they are sent to work.
Enlist an agent that will help you properly classify your business for insurance purposes to ensure that appropriate coverage is provided no matter where your employees are assigned to work. Policies must be written to specifically include (or remove exclusions for) the actions of your employees while they are working at a client site or while using client equipment, machinery or computers.
Policies with temp agencies specifically in mind
A commercial general liability (CGL) policy covers third-party bodily injury and property damage claims that may arise. If, for example, an employee in a temporary position damages a client’s property while working, your CGL policy responds to the claim.
Another important coverage to obtain is employee theft and crime coverage. This protects your staffing firm from the costs of theft, dishonesty and fraudulent acts committed by an individual employee or a group of employees. A basic standalone employee theft and crime policy provides coverage for forgery, alteration, theft, unauthorized electronic funds transfers, credit card fraud, computer fraud, money order fraud and counterfeit fraud.
There are other policies you should certainly consider; especially employment practices that addresses harassment, and discrimination charges occurring in the workplace. Having temporary staffing insurance for the exposures that exist in this dynamic industry can keep your company in business for years to come.