Staffing Company Risk Management

Staffing Company Risk Management

Operating a staffing or temp agency involves many different contractual relationships. These legally binding agreements give rise to different types of risks. World Wide Specialty Programs emphasize that mitigating staffing company liability requires insurance coverage designed for the industry’s unique circumstances and needs. There are three types of insurance commonly used by firms that supply labor resources to clients.

Workers’ Compensation Policies

Workers’ compensation insurance is regulated by each state and requirements vary. This coverage is intended to address work-related injury claims and lost wages for employees who are hurt on the job. Staffing companies provide this type of insurance for both their own employees and for employees who are placed through the agency.

General Liability Policies

As the name implies, general liability insurance addresses a range of risks. If an employee who was placed by the staffing agency damages the client company’s equipment, a general liability policy would provide coverage. Other risks addressed by general liability policies include injury claims by third parties on the staffing company’s premises.

Professional Liability Policies

When a staffing agency makes errors in tasks such as paying wages or performing background checks, it creates different types of liability. A professional liability policy, sometimes referred to as an errors and omissions policy, provides coverage in situations like these.

The unique insurance needs of the staffing agency industry are met today by policies specifically geared to address the risks and liabilities inherent in this sector. Work with your agent to determine which policy is best for your business.

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