Staffing agencies seem to be everywhere these days, for good reason. Not only do these organizations connect qualified employees with good employers, they help companies avoid many of the costs and stresses associated with recruitment and retention. Of course, they also face legal liabilities that other types of businesses easily avoid. If you own a staffing agency, purchasing staffing insurance is an effective risk-management strategy.
Comprehensive Insurance Coverage
Staffing agencies need unique insurance. By working with a qualified insurance agent, you can better gauge risk and successfully limit it. To start, however, you may consider purchasing the following types of general business insurance:
- General liability
- Property insurance
- Workers’ compensation
- Automobile coverage
After purchasing regular business insurance, you may want to add coverage that is tailored to your specific needs. For staffing agencies, coverage usually includes professional liability insurance, fiduciary duty coverage, and director and officer protection. Since you are likely not an insurance expert, you probably want to leave the technical reputable to an experienced insurance agency.
Because employers have a choice when it comes to collaborating with a staffing agency, you want to do what you can to establish your agency as a leader in the industry. By purchasing staffing insurance you not only protect your organization from legal harm, you legitimize it in the eyes of prospective clients.