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Comprehensive Temporary Staffing Agency Insurance Coverage
As a recruitment agency, you excel at matching talent with opportunities, from architects to clerical, engineers, attorneys, and programmers. However, you also face substantial risks.
Imagine a placed worker lacking disclosed qualifications or red flags jeopardizing client staff cohesion. What happens if an employee crashes their car while visiting a client site?
What type of insurance is compulsory for staffing agencies?
Let us explore these common staffing insurance concerns.
With over 20 years of experience serving staffing firms, The Allen Thomas Group has expertise in customizing professional insurance solutions for talent management professionals.
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Table of Contents
Critical Insurance Coverage For Staffing Agencies
How to Find the Right Staffing Agency Insurance
From recruiting and onboarding contract employees to managing their long-term placements at client organizations, staffing companies juggle innumerable labor-related variables.
You adeptly match applicants with positions balancing technical qualifications, workplace culture fit, pay rates, and job seeker aspirations.
However, despite earnest efforts cautioning talent and hiring managers, undiscovered red flags surface – placed workers under perform, professionals don’t collaborate with existing staff, safety incidents happen, harassment complaints get filed, among others.
Such situations mean disappointed clients, refund demands, potential lawsuits, and real financial consequences without proper staffing insurance coverage.
Here are some of the key insurance policies for talent agencies:
- General liability insurance
- Professional liability (E&O)
- Employment Practices Liability (EPLI)
- Workers’ compensation insurance
- Hired & non-owned auto liability
- Staffing bond coverage
- Cyber liability insurance
Is Commercial General Liability Insurance Essential Insurance for Staffing Agencies?
A general liability policy covers legal defense costs and potential settlements for third-party claims against your staffing firm involving bodily injury/property damage caused by placing temporary employees at a client company location.
For example, a placed machine operator improperly shut down equipment, causing it to spark and ignite flammable stock.
It provides insurance for staffing agency and protects its assets when found legally responsible for bodily injury and commercial property damage claims caused by placed talent left without guidance.
Do Staffing Companies Need Professional Liability Insurance?
Also referred to as errors and omissions insurance (E&O), professional liability insurance protects staffing firms against claims of financial harm resulting from negligent hiring or referral – placing applicants lacking disclosed qualifications or red flags that jeopardize staff cohesion.
It shields against situations like:
- Candidate inaccurately overstates engineering capabilities, leading to failed prototypes
- New recruit omits harassment history and repeats behavior at a new employer
E&O insulates your bottom line from poor placement claims caused by inadequate vetting/screening or faulty descriptions of employee abilities provided to clients.
It is crucial protection unique to agencies.
Finding the Right Insurance Partner for Your Commercial Insurance Needs
A leading insurance agent within the insurance industry is paramount in partnering with specialized underwriters.
However, choosing an insurance provider with expertise in working with the temporary staffing industry is important.
Look for specialists instead of generalists who can cater to your specific requirements.
- Direct access to staffing insurance carriers – not middlemen lacking carrier connections.
- Year-round risk guidance beyond sales transactions for the temporary employment agency.
The right staffing insurance agency caters to your insurance needs, combining sector expertise, tailored products, and ongoing improvement insights.
Getting The Right Insurance For Your Staffing Agency
We know how frustrating and complex the process of finding the right insurance coverage can be and how it slows down your ability to care for your customers.
Let us help fix it for you in 3 easy steps.
Tell us about your specific needs and we will find the right policy for you.
Review the results of our search.
We will walk you through your new policy step by step.
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Questions to Keep in Mind Before Selecting Commercial Insurance for Staffing Agencies
Is Employment Practices Liability Insurance for Staffing Industry Needed?
Employment practices liability insurance program (EPLI) covers legal expenses and damages associated with workplace-related lawsuits by placed employees like sexual harassment, discrimination, wrongful termination, or retaliation claims tied back to a client company’s ongoing direct management of the temporary worker.
This protects the staffing firm indirectly from employment lawsuits against the client organizations to which you supply talent. Allegations get filed against both companies. Employee benefits liability picks up your legal costs.
Commercial Auto & Hired and Non-Owned Auto Liability for Employment Agencies
Staffing firms rely on vehicles to shuttle applicants to interviews.
They use commercial vehicles for other business travel purposes. Beyond insuring agency-owned vehicles, hired & non-owned auto coverage is key for accidents caused by staff using personal vehicles on company time.
This type of business insurance protects your assets if they cause damage using their cars for work. Don’t risk claims falling back on corporate assets.
Cyber Liability Insurance for Staffing Agencies as Part of Insurance Package
As recruiters who manage volumes of personal information of applicants and share selective data with hiring organizations, you take steps to minimize breaches through encryption, firewalls, and access controls.
However, hacks might still happen, causing sensitive data breaches like SSNs, passwords, or confidential applicant details.
Violations carry legal consequences, spiraling IT repair costs and reputation management expenses without robust cyber liability insurance limits that cover data intrusions.
Is Staffing Bond Insurance Essential Liability Policy for Temporary Staffing Firms?
Staffing Bond Insurance protects you against financial loss from deceptive employees. It covers damages from fraud by applicants like false credentials, inflated work history, billing overcharges, and kickback schemes. With staffing services insurance, you can safeguard firm finances and credibility after fraud incidents.
The right liability coverage caters to your staffing need and gives you peace of mind against key exposures to help protect your business.
What States Do You Provide Insurance In For Staffing and Recruitment Agencies?
- Alabama
- Arizona
- California
- Colorado
- Connecticut
- Georgia
- Illinois
- Indiana
- Kansas
- Kentucky
- Michigan
- Minnesota
- Missouri
- Montana
- Nevada
- New York
- North Carolina
- Ohio
- Pennsylvania
- South Carolina
- Tennessee
- Utah
- Virginia
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That allows us to find the best insurance rates for our clients.
Get The Best Temporary Staffing Agency Insurance From The Allen Thomas Group
As a trusted independent insurance agency for over 20 years, The Allen Thomas Group provides specialized expertise and exclusive underwriter access to address risks employment agencies uniquely face.
Our insurance experts have experience working with top staffing firms and brokers, providing the best insurance products and the right coverage you need.
From asset protection to loss control, there isn’t anything in the staffing industry that we are not aware of. We will design the best program necessary for success of our clients’ temp agency.
We offer tailored packages bundling general liability, E&O coverage, employment practices liability, workers compensation insurance, commercial auto insurance or hired auto, workers comp, staffing bonds, and more support through deep risk management guidance over the entire client relationship – not just at renewal.
Our insurance products evolve and scale with your operations.
Trust our knowledgeable agents to help address your concerns about the Waiver of Subrogation, duty to defend, Pay-as-you-go Workers Compensation insurance, and guaranteed cost assurances. We will provide you with support for your direct hire and temporary positions.
As one of the leading U.S. insurance companies, we design tailored coverage options for your recruitment company. Contact The Allen Thomas Group at (440) 826-3676 to discuss protecting your permanent, temp, or contract staffing enterprise.
Get the certificate of insurance as proof of your protection.
