As a staffing agency, you have a responsibility to employers and employees. Given your organization’s responsibilities, there are major liability risks that you need to be prepared for. While risk mitigation may go a long way, you must have critical insurance policies. Here are the top three staffing insurance programs to consider.
Workers Compensation Insurance
Staffing agencies are required to carry some form of workers’ compensation insurance for their employees. In some states, it is the staffing agency that technically employs the workers and so they have to pay workers’ compensation in case they are injured.
Professional Liability Insurance
Professional liability insurance is a protection in case someone alleges that your company made a mistake or acted negligently while offering your services. For instance, if you place an employee with the wrong company, if you fail to meet the conditions of a contract or do not uphold industry regulations, you could face a lawsuit.
General Liability Insurance
General liability insurance is necessary for all businesses. General liability covers the following:
- Third-party injuries
- Property damage
- Copyright infringement
The coverage is for legal costs, settlements and costs associated with lawsuits.
Staffing agencies require certain insurance options to protect themselves and to protect the employees. Since all staffing agencies are different, there may be more customizable options for different organizations.