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Staffing Insurance: Three Fundamental Coverages Explained

There are several factors at play when building a staffing agency insurance policy. With so much risk involved, it’s vital that you have the necessary coverages for your company, internal employees and contractors. Here are three fundamental coverages that you should plan to include in your policy.

General Liability

General liability covers you in case a third-party suffers bodily injury or property damage because of your business. For staffing agencies, this may be a customer hurting themselves in your office or damaging their car in your parking lot. In such a situation, your policy would cover your legal fees as well as any expenses for which you’re found liable.

Professional Liability

Professional liability covers you in case a third-party claims that an error on your part led to them experiencing a loss. For staffing agencies, an example of this may be a client suing you because a contractor you hired is totally unqualified for the position. Like general liability, your policy would cover your legal fees and other associated expenses.

Workers’ Compensation

Workers’ compensation covers your in-house employees and contractors in case of a workplace accident that leads to an injury, illness or death. Your policy would cover any legal or medical fees as well as lost wages. In case of death, your policy would be used to make payments to beneficiaries or covering funeral costs.

Finding staffing agency insurance on your own can get complicated. Work with an experienced agent who can simplify the process and help you find a policy to match your needs.

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Liability Coverage for Off-Site Employees

With many job seekers finding placement through third-party agencies, staffing agency insurance becomes a problem-solver for hosting companies. There are unique risks with these temporary to long-term employment relationships, and standard business policies will not fully address these.

With temporary employment, a business is able to fulfill short-term labor needs such as a placement for a position that has yet to be filled. The staffing agency offers candidates from their pool of available workers, then oversees the individual’s performance and conduct despite being placed at a location offsite. Because of this direct connection, the agency must assume liability in the event of an incident involving the employee. This could be in relation to theft, property destruction or even personal injury.

This insurance is good for agencies who work with:

  • Clerical or administrative workers
  • Bookkeepers or data entry clerks
  • Janitorial or maintenance workers
  • Warehouse or manufacturing workers
  • IT and computer professionals
  • Hospitality workers

While a business or commercial insurance policy would address workplace injury, harm, discrimination or damaging behaviors, these policies are not written to include coverage for off-site occurrences. The difference with staffing agency insurance is this gap coverage. These policies will specifically include or exclude the actions, scenarios, encounters and liabilities associated with the potential working environments of your employees.