Staffing insurance is something that needs to be on the top of the list of must-have business components for those companies that want to remain in business for long. But it is simply not enough for firms to just purchase coverage; they must be committed to communicating their dedication to workplace safety, both for direct employees and those whom they deploy to companies in need around the community. Failure to do so can have dire circumstances and costs that are devastating to both the bottom line and management’s moral compass.
One firm fined more than $100,000
One company found this out the hard way recently. A news item retold how one employment firm has been cited by the city for a whopping 23 serious violations, with fines totaling approximately $100,000. What sparked an investigation was an injury sustained by a temporary worker, who had to be hospitalized due to the severity of his wounds. When the city checked into what had happened, they discovered multiple instances of negligence as well as violations – in most cases, the company’s failure to implement safety processes to be followed when workers were entering a confined, limited-access space for which a permit was required.
The cost, both tangible and intangible, is enormous
The employee who was hospitalized may never be fit to work again. The agency will undoubtedly suffer from bad press that could affect the employment contracts it already has in place with various employers, as well as create a chilling effect with a troubled reputation that will make it less attractive to potential clients. Add to that the increased premiums that will likely occur due to the claims payout, and you have the makings of a shaky bottom line for at least the immediate future.
One way to avoid these complications is to work closely with an experienced professional insurance agent. He or she will be well versed in reviewing all facets of the business to determine which policies are necessary, appropriate limits, and best practices and processes to follow (for example, having a comprehensive check system to ensure all permits are on file and updated regularly). Talk to an agent today about your staffing insurance needs and discover a wealth of information that will help you run your business better.