Staffing companies are vulnerable to a number of liability risks. Not only can they be sued by the workers they place with businesses, but the business owners themselves can also file claims if they are unhappy with the placements.
Insurance Plans for Staffing Companies
Without adequate insurance coverage, staffing companies can face expensive legal fees and settlement costs. The best insurance policy for staffing agencies includes a comprehensive plan with several liability clauses, including:
- Commercial General Liability – This policy covers bodily injuries and property damages to third parties.
- Professional Liability – Also known as errors and omissions insurance, this policy protects the staffing agency and its employees from claims filed due to errors or negligence that caused damage of a financial nature to clients.
- Employment Practices Liability – This coverage protects the staffing agency from claims made by employees for employment practices deemed discriminatory, such as wrongful termination or harassment.
- Employee Theft Coverage – Agencies are protected from the costs involved in theft and other fraudulent acts by employees. Policies may also cover forgery, computer fraud and the unapproved transfer of funds.
- Workers Compensation – The laws vary by state, so it’s critical for the company’s management to be familiar with the state’s rules.
Staffing agencies need a comprehensive insurance policy to protect against many types of liability risks.