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3 Can’t-Miss Types of Insurance for Your Staffing Agency

BY PMC


Keep your employment or staffing agency safe with these three essential insurance policies.


The services that staffing agencies supply opens them up for some major liability risks.  Because a staffing agency operates as the middle-man between employers and employees, they have obligations to both parties.  If something goes wrong on either end, then your staffing agency can end up in the midst of the drama. Luckily, you can protect your company and its assets by securing the right insurance coverages. From general liability to workers' compensation insurance for staffing agencies, here are the policy types that you need to cover all your bases.


1) General Liability Insurance


General liability insurance is one of the first policies that any business buys. This is because this is the best protection against many of the liability issues that crop up during the course of running a business. For instance, this type of insurance will offer coverage for things like third-party injuries, property damage, and advertising issues (such as copyright infringement).  Not only will this type of insurance compensate the affected party for their losses, but they will also offer coverage for your business’s legal and settlement costs if the injured party decides to sue.


2) Professional Liability Insurance


Also known and errors and omissions (E&O insurance), professional liability insurance will protect you if your business is accused of making a mistake or being negligent while rendering your professional services.  For instance, staffing agencies can run into professional liability issues if a client thinks you:


  • placed an employee lacking the right skills to complete the job.

  • failed to meet the conditions of a contract by a certain deadline.

  • failed to uphold industry regulations.


3) Workers Compensation Insurance


Workers' comp insurance offers coverage to compensate employees for medical expenses and lost wages if they are injured on the job.   Most states have laws that require staffing agencies to carry some minimum amount of workers' compensation coverage.  However, state laws can be tricky because some might consider your temps employees of your agency as opposed to employees of the company you place them in.  So, make sure you understand your specific state’s guidelines and speak to an experienced insurance agent to ensure that you have the right coverage to meet legal minimums.

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