You have clients at staffing firms and want to guarantee that you provide the right insurance coverage that comes at a competitive price. With staffing firms, which already face a host of challenges, you want to ensure that you deliver their professional liability coverage with ease and by a leader in the industry.
Staffing Firms and Professional Liability
The best service you could provide to your clients is a thorough presentation on how their staffing agency could benefit from professional liability. We have outlined some of the impacts of this coverage.
The Benefits of Professional Liability for Staffing Firms
Often associated with specialized fields, such as doctors or architects, some may wonder why staffing firms need professional liability insurance. As a field with a revolving door of potential employees and a host of clients from varying industries, staffing companies often face higher risks. Temporary employees get sent to an unfamiliar environment, which may lead to a potential injury. If that happens, the firms may hold liability from the injured worker and the client.
Professional liability provides these firms a safety net if a lawsuit happens. The right policy will cover the costs associated with the legal process, including lawyer fees and lost time. Additionally, many clients will only work with firms with this type of insurance. Firms with a policy have a better competitive advantage and can often save money on premiums by incorporating processes that lower risks, such as safety training and background checks.
The Importance of Professional Liability Insurance Ratings
Like with any insurance product, price does not always equate to quality. Ensure that the company comes with a solid reputation. Luckily, the industry uses various rating systems that make finding a fully licensed, reputable company more straightforward.
The right professional liability provider should have high AM Best rankings and excel on the typical Standard and Poor ratings. These longtime rating systems focus on the financial side of a company. S&P issues letter grades from AAA to D. The latter is the worst. The ratings get determined by how well the company manages its finances. S&P covers various industries, whereas AM Best solely deals with the creditworthiness of insurance companies. It also follows a letter-grade system, factoring in operating performance, finances, and business profile factors into the rating. For example, an A+ rating equates to a superior ability to meet policyholder obligations.
The Keys to Choosing the Best Professional Liability Provider
After trimming down your list of reputable businesses, deciding which one to choose requires some research and thinking about your clients. Not every staffing agency has the same needs. While some may focus on office work, others may incorporate different types of jobs, such as light manufacturing. The different risks faced mean finding a provider that offers flexibility to policyholders.
In general, a firm can opt for occurrence or claims-made policies. The former typically comes with added costs initially but has fewer administration complexities. The latter initially costs less but typically means staying on top of renewals or changing coverage options. For staffing firms, pay-as-you-go coverage often provides the best versatility. It lets them continually change coverage based on the number of employees changes.
Additional factors to consider when choosing a professional liability provider include the company’s online presence, ease of use of its platform, and customer satisfaction.
About World Wide Specialty Programs
For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage, we have available to protect your staffing business, give us a call at (877) 256-0468 to speak with one of our representatives.