Staffing agencies face unique risks when they send employees off-site to work under the supervision of others. However, these same difficulties are also opportunities for creative approaches. From vetting potential employees to protecting property and equipment, you can adopt innovative strategies to protect clients from industry-specific exposures with comprehensive, customized staffing agency insurance.
Common Risks for Staffing Agencies
From financial and credit-related risks to potential fraud and liability issues, staffing agencies have numerous risk exposures.
These firms are responsible for handling employees’ mistakes and ensuring the safety of employees at off-site jobs.
In addition, the multifaceted aspect of workforce management is an ongoing concern for staffing agencies. Employees might pad their timesheets, clients might refuse to pay, or someone could get hurt on the job.
These potentially overwhelming problems can be curtailed with the right insurance coverage.
Novel Approaches to Safeguarding Staffing Firms
Before suggesting the best staffing agency insurance for your clients, you need to understand the nature of each firm’s business. Some may need to transport or store heavy machinery while others place contract employees who could be asked to handle sensitive documents.
Once you know your clients’ specific needs, you can turn to fresh risk management approaches. Strategies include:
- Occurrence-based liability policies that protect your clients against damage caused by contract employees on assignment
- Professional liability coverage that protects staffing firms against claims of negligence, oversights, mistakes, and failing to fill a position by a certain date
- Workers’ compensation coverage
- Cyber insurance that protects against data breaches and cyberattacks
You can also educate your clients about effective ways to vet potential contract employees, thus reducing risk.
Furthermore, consider adopting more responsive underwriting and using technology to increase efficiency. The nature of risk itself is changing as lines blur between personal and business lives.
The Role of Insurance Agents
Insurance agents help their clients choose the best policies for their needs. In addition to understanding industry risks, as an insurance agent, you can also suggest particular risk management practices to limit potentially devastating losses.
You are an essential point of contact for your clients. Be proactive. Help them stay up-to-date with employment trends. Review coverage from time to time to make sure the policies still fit each client’s needs.
Clients may ask you questions about their staffing agency insurance or seek advice about other types of available coverage. If a claim has been made, you can help your clients through the process.
Creative Approaches to Providing Staffing Agency Insurance
Employment firms have difficult risks that can make insuring them seem challenging. However, when you can get creative with your approaches, you open up new horizons. Novel strategies make it possible for employment companies to get the comprehensive, customized staffing agency insurance they need despite industry-inherent risks.
Difficulties become opportunities for insurance agents with fresh approaches to underwriting, such as using technology, considering all facets of risk, and being proactive in risk management and policy assessment. Creative underwriting strategies transform risks that once seemed impossible to cover into opportunities for growth.
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.