No company wants to face losses, but they happen. Staffing firms especially need financial protection against damage and loss. Staffing agency insurance safeguards multiple types of business scenarios.
Business property coverage protects on-site assets and structures against loss and damage. However, companies that transport equipment, tools, and materials from one site to another also need the specialized protection of inland marine insurance. This article explains the distinctions between these two types of policies.
Risks That Staffing Agencies Face
Staffing firms have unique risks inherent to the industry. They send employees to work under the supervision of external clients, and there are many opportunities for loss or damage.
Whether they specialize in placing temporary workers or focus on permanent placements, all staffing firms must mitigate risks encompassing:
- Employee injury
- Damage to client equipment or business
- Loss or damage to expensive machinery, such as forklifts
- Damage to property or products in warehouses
- Claims from both employees and external clients
The right staffing agency insurance can protect against exposures that could financially devastate a staffing company or even shut its doors.
Types of Staffing Agency Insurance Coverage
Staffing agencies need solid coverage tailored to their businesses.
Business or commercial property insurance protects on-site physical assets such as buildings, furniture, equipment, and the property of others at the work site. Firms that operate at a stationary location, such as an office, benefit from this coverage.
However, business property coverage does not protect against losses for items off-site. If your clients have items in storage or on the move, they need specialized coverage.
Inland marine coverage protects businesses against financial loss when equipment, property, machinery, or products are transported over land. It also covers goods stored in warehouses and used at work sites.
Crucial Differences Between Inland Marine Insurance and Business Property Coverage
While all staffing firms need property insurance, some may require additional security. Business property insurance protects only on-site property, while inland marine insurance mitigates risks away from the company.
In addition to covering products and equipment moved or stored off-site, inland marine insurance protects the property of external clients. It also covers business property in the possession of off-site employees.
Inland marine coverage could be vital to many staffing firms’ insurance portfolios.
Staffing Agencies Have Unique Considerations
Staffing agencies have particular risk exposures from sending employees to work off-site for others.
While business property coverage is essential to protect company structures and offices, staffing agencies may also benefit from inland marine insurance for items in transit or storage.
Ensure your staffing clients understand the need for comprehensive coverage to protect themselves and their assets.
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 are 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.