Staffing agencies are in the unique position of being responsible for temporary workers without supervising them day-to-day. If something occurs on the job, the recruiting company may be on the hook for damages incurred by their employees and clients. Unfortunately, insurers limit how much they’ll pay in a general liability claim. Umbrella liability insurance covers the remainder, ensuring staffing agencies don’t have to pay out of pocket.
Benefits of Umbrella Liability Insurance for Staffing Agencies
Insurance companies limit the monetary amounts they’ll pay out to decrease risk. Paying big claims strains insurers’ ability to protect their other clients, so capping one client’s total is fairer than distributing the burden among the larger group of low-risk customers. As a result, companies with greater risk must find additional staffing liability insurance.
In addition to covering these higher risks, umbrella insurance also provides the following:
- Third-party liability coverage
- Legal defense costs
- Reputation protection
- Excess workers’ compensation claims coverage
- Breach of client contractual requirements coverage
Due to their industry, staffing agencies also need coverage for multiple locations and claims. A single agency can oversee workers at dozens or even hundreds of job sites, increasing the chances of unexpected situations. Umbrella liability insurance protects against these unforeseen risks.
Liability Risks for Recruiting Agencies
To best serve their staffing company clients, insurance agents should familiarize themselves with this industry’s unique liability risks. Many recruiters work with a diverse client base, meaning they need employees who can fulfill a wide range of roles. While matching skills and experience to an appropriate job is part of a staffing agency’s responsibilities, there’s always the risk of workers not receiving adequate on-site training, which can put them at risk of injury.
There’s also no guarantee that client work environments and equipment will meet safety standards. Staffing agencies trust clients to follow regulations but have little control over the reality. Yet, if an employee sustains an injury, the staffing agency is partially responsible for paying medical and other expenses as a joint employer.
Policy Customization for Staffing Company Needs
Tailoring staffing agency insurance saves customers money while safeguarding their assets. It’s up to insurance agents to learn about their clients’ unique needs to offer adequate protection.
Smaller companies may not have the finances to weather catastrophic claims. Umbrella liability insurance can be the difference between recovery and bankruptcy.
Extended policy limits also assure clients that should something happen on the job, they won’t have to navigate the fallout alone. An umbrella policy signals that the staffing agency has planned for potential risks and qualifies for additional coverage. These signs of foresight can expand opportunities in the recruiting industry.
Umbrella Liability Insurance for Peace of Mind
Because they face so many unique risks, staffing agencies must maintain adequate insurance coverage. Fortunately, umbrella liability insurance can fill gaps left by general liability policies.
Agents serving this industry should provide these options and understand their clients’ priorities to create comprehensive protection. With this safety net in place, recruiting companies can focus on delivering top-quality service to their customers.
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.