Staffing agency insurance is comprised of a set of business policies designed to protect the owners of the staffing agencies and their assets in case of lawsuits or accidents. Each insurance policy covers different risks that are inherent in the industry. Like most businesses, staffing agencies face unique risks, and agency owners must be strategic in their applicant management and choose coverages that work for their specific business operations.
General Liability Insurance
General liability insurance protects staffing agencies by covering third-party claims of property damage, physical injury, and advertising injuries (i.e. defamation). This policy can step in for the injured party’s medical/ repair expenses or legal fees if the other party ends up suing, regardless of whether the agency is at fault. This coverage even applies to agency staff.
Commercial Property Insurance
Commercial property insurance steps in for agency-owned property if it becomes damaged by fire, theft, vandalism, or other covered perils. Policies cover the physical space, office equipment, furniture, and fixtures up to the coverage limit. If your client rents their space, they can opt for a policy that covers only the office contents.
Workers’ Compensation Insurance
Staffing agencies are usually state-mandated to obtain workers’ compensation to cover employees’ medical bills and lost wages if a work-related injury or illness occurs. For clients that recruit employees for permanent positions, they are only required to have workers’ compensation for their in-house employees. However, temporary staffing agencies are required to cover both in-house employees and workers they place with clients.
Commercial Crime Insurance
Crime insurance covers financial and property losses that are resulting from illegal activities such as forgery, computer fraud, and theft.
Policies typically protect the policyholder’s funds and property, so temporary staffing agencies need to have an endorsement for items owned by clients. Many scenarios can trigger crime insurance. Commercial property policies do not typically cover stolen money or securities or employee dishonesty, which is why commercial crime insurance is critical for any business, but especially for temporary staffing agencies.
Errors and Omissions Insurance (E&O)
Errors and omissions insurance protects your clients in lawsuits associated with their professional services. For instance, if they are accused of sending an under-qualified candidate whose mistakes end up negatively impacting their client financially, professional liability insurance will cover the legal fees.
Other types of claims professional liability insurance can cover:
Errors
Sending an applicant to the wrong interview.
Omissions
Failing to perform background checks.
Misleading statements
Misrepresenting a workers’ qualifications to get someone a job.
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.