Why Do Employment Agencies Face Unique Insurance Risks?

Why Do Employment Agencies Face Unique Insurance Risks?

Every line of business faces some sort of risk. This is precisely why insurance is necessary. You never know when something will happen with one of your employees or one of your clients that could lead to a lawsuit. Staffing Insurance helps to address the specific risks that staffing agencies face. While this industry may have some overlapping risks with other industries, they also have unique ones.

The Line Between Temporary and Permanent

Employment agencies have many permanent employees, but they also spend much of their time finding employment for other people. These agencies basically take on responsibility for the people they are helping to find employment, since these people essentially become temporary employees and representatives of the agency. Everything that these people do for the employers that hire them reflects on the staffing agency, for good or for bad. These actions might not only reflect on the person as a potential employee for a business, but on the agency as a producer of quality potential employees.

Covering Your Bases

Employment agency insurance helps the staffing industry to cover their bases in the event of something going wrong with a temporary employee or a potential employer. Since employment agencies live within this fine line of temporary and permanent staffing, they are in need of insurance coverage tailored to their needs. Finding an insurer who understands the unique risks of the staffing industry can be a smart way to go.

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