When it comes to business insurance, staffing agencies must not only consider their own activities but for those of their contractors and clients as well. Here are two key liability coverages that you should plan to include in your staffing agency insurance to protect yourself and the stakeholder with which you’re involved.
Professional liability can cover you against claims made by your client or the contractor you hired. For example, if the contractor you hired does a poor job and causes your client to lose money, your client may choose to bring a lawsuit against you. Alternatively, the contractor you hire may file a lawsuit against you if he or she feels as if you misled them about a position or hired them into a position that wasn’t a good fit for their professional goals.
Employment Practices Liability
Employment practices liability also protects you from different types of lawsuits. For example, if a contractor feels like you used illegal practices during the hiring process, they may choose to file a lawsuit. Also, a contractor who was fired by one of your clients may file a lawsuit if he or she feels like it was done for improper reasons. In this case, you may be included in such a lawsuit as well and require coverage for your legal expenses. Other forms of liability coverage you’ll need to consider general and directors and officers liability. Work with an agent who’s experienced in staffing agency insurance to build a full policy that’s right for you.