Staffing stop-gap liability insurance is a crucial coverage that helps protect staffing companies from potential gaps in their workers’ compensation policies. This type of staffing company insurance covers employee injuries that a standard workers’ compensation policy might exclude, such as those that occur outside the workplace or during non-work-related activities.
As an insurance agent, it’s important to understand the role of staffing stop-gap liability coverage and how it can help safeguard your clients’ businesses from financial losses due to employee injuries.
What Is Staffing Stop-Gap Liability Insurance?
Staffing stop-gap liability insurance is a specialized coverage that fills the gap between workers’ compensation and general liability insurance for staffing companies. It covers employee injuries that may not fall under a standard workers’ compensation policy.
Unlike general liability insurance, which covers third-party claims for bodily injury or property damage, staffing stop-gap liability insurance specifically addresses the unique risks staffing companies face when placing employees at client sites. This coverage helps ensure staffing companies are not left financially responsible for employee injuries that fall outside the scope of their workers’ compensation or general liability policies.
Key Aspects of Staffing Stop Gap Liability Insurance
There are a few key considerations with staffing stop-gap liability insurance.
Coverage Details
This insurance covers bodily injury, disease, or death sustained by temporary employees while working for a client company. This coverage typically applies when the injury or illness falls outside the scope of the staffing company’s workers’ compensation policy or the client’s general liability insurance.
Exclusions
Common policy exclusions may include intentional acts, contractual liability, and injuries covered under other staffing company insurance policies, such as workers’ compensation or general liability. Additionally, some policies may exclude certain types of work or industries deemed high-risk.
Policy Limits and Deductibles
Policy limits for staffing stop-gap liability insurance can vary depending on factors such as the size of the staffing company, the types of industries served, and the company’s risk profile. Higher limits may be necessary for staffing companies that work with clients in high-risk industries or have a history of claims.
Deductibles, which represent the amount the staffing company must pay before insurance coverage kicks in, can also impact the policy cost.
5 Key Takeaways on Staffing Stop-Gap Liability Insurance
- Tailored coverage: Staffing stop-gap liability insurance provides tailored coverage for staffing companies, addressing unique risks associated with placing temporary employees at client sites, such as injuries that occur outside of the traditional workplace.
- Financial protection: This insurance helps mitigate potential financial losses by covering injuries that occur outside the traditional workplace, such as accidents at client locations.
- Regulatory compliance: Compliance with regulatory requirements is crucial, as some states may have specific mandates for staffing companies regarding insurance coverage.
- Specialized insurers: Partnering with specialized insurers who understand the intricacies of the staffing industry is essential to ensure comprehensive coverage tailored to the company’s specific needs.
- Risk mitigation: The importance of addressing specific risks and obtaining appropriate insurance cannot be overstated, as it helps protect staffing companies from potential liabilities and financial challenges.
As the staffing sector continues to grow and evolve, insurance agents need to stay informed about the latest developments in staffing company insurance, such as stop-gap coverage, and partner with specialized insurers who can provide the expertise and resources needed to navigate this complex landscape. Contact us today for more information.
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.