Temporary staffing agencies have some very unique concerns when it comes to buying insurance. Dependent upon your particular type of staffing agency, workers compensation and/or professional liability may end up being some of your largest expenses as well as some of the largest exposures you’ll have to contend with. Staffing agencies come in different sizes, and vary much more than most other types of businesses.
The staffing agency insurance needs will greatly differ for those that staff office workers, as opposed to those that staff professionals such as lawyers or doctors. Still, other agencies that staff manufacturing companies, construction sites, and sawmills, all have their own exposures and risks to consider. This is why working with someone having the resources and expertise to properly advise you on how to insure your staffing agency and protect your investment is so vital.
Workers comp and professional liability
Most everyone understands how necessary workers comp insurance is and the absolute need for it. Remember that not only does workers comp protect the employee; it also protects your staffing firm from litigation. Be sure to obtain workers compensation insurance from a qualified, highly rated insurance company with a program specifically for staffing firms.
For those with professional liability concerns, your exposure is likely to be much higher than those companies that staff blue collar positions. However, it can be just as costly dealing with claims concerning workers who damage property or cause injuries to others while operating a forklift, for example.
The fact that you are providing a professional service and it results in an act of negligence on your part or your employee’s part in any way may unfortunately not be covered under your general liability insurance policy.
Consider the ramifications of not having a professional liability policy as part of your staffing agency insurance program. This creates a great deal of risk regarding all the assets of your business (bank accounts, physical assets) whenever you send one of your employees out to do a job. You could potentially stand to lose those assets that you have worked so hard to build up if one of your employees is responsible for a professional liability claim.