Staffing Management 101: How to Insure Your Staffing Agency

The workplace has become a litigious place, which means a staffing agency can’t be too careful about insurance protection. An unhappy employer who feels you misrepresented an individual’s qualifications, or an irate worker who feels you’re guilty of discrimination or defamation of character can become a legal nightmare. No one likes signing checks for insurance premiums, but you’d be foolish not to protect your agency from a catastrophic loss, especially when there are so many individuals who could find fault. Having adequate insurance is basic staffing management.

Here Are Some Types of Insurance Staffing Agencies Should Consider  

Business Liability Insurance Package Policy

Often referred to as a Business Owner Policy or “BOP,” this general liability package policy is very common for small businesses that carriers consider low risk. It protects your staffing agency in the event a client is injured on your premises, or if you or one of your employees causes an injury or property damage at a client’s location. 

Professional Liability Insurance

Professional Liability or “Errors & Omissions” Insurance provides coverage in the event a client or a third party claims economic damages caused by your negligence, error or omission in the performance of your professional services. No matter how careful you may be, you can never cover ALL your bases.

Workers’ Compensation Insurance

Required in many states, Workers’ Compensation Insurance provides medical and disability coverage for company employees in the event of a work-related illness or injury. If you stay in business for any length of time, you’re likely to see multiple Workers’ Comp claims.

Employment Practices Liability Insurance

EPLI insurance is essential coverage for any staffing agency. It provides the protection you need should one of your employees allege any number of employment practice violations, including age, race or gender discrimination, wrongful termination and sexual harassment. These kinds of allegations are unpleasant enough; no need to make them worse by notinsuring yourself against them.

Umbrella Liability Insurance

Umbrella or “Excess Liability” Insurance provides you with an extra layer of protection in the event you have large or multiple claims that exceed your General Liability, Commercial Auto or Employment Practices Liability policies. 

Does Solid Staffing Management Practice Demand All of It? 

Well, any staffing agency definitely needs Workers’ Compensation Insurance and EPLI. BOP is standard for any small- to medium-sized business and Professional Liability Insurance is certainly recommended for any professional services organization. As for whether your staffing agency absolutely needs Umbrella Liability Insurance, you could possibly do without it. But it can be quite inexpensive. Do you really want to take a chance? Before you decide, we suggest you talk to your insurance agent.