When it’s time to review insurance coverage, staffing agencies may be too focused on Workman’s Compensation. Employee liability claims, while less common, can be more expensive and difficult to settle. Gaps in this area can go unnoticed until a claim has been filed, and it’s too late. These are some of the situations that are not covered by Workman’s Compensation:
• Claims from an employee’s spouse or other family member resulting from an employee’s injury.
• Suits against a third part deemed responsible for an employee’s injury.
• Claims against your company as both an employer and the provider of a product, which caused the employee’s injury.
Staffing Agencies Should Be Aware of These Issues
When you are researching insurance options, the staffing industry has some unique requirements, which should be on your radar. A firm that specializes in temporary employment agencies can help you select a comprehensive employee liability policy that addresses significant issues such as:
• Assigning your company to the correct category. If you company makes both temporary and permanent placements, it should not be classified as an “employment agency.”
• Coverage should be provided for both errors and omissions made in the placement of employees as well as employees’ errors and omissions once they are placed.
• Protection against theft of a client’s property should be included.
• Coverage for employees who are driving a client’s vehicle is important.
Make sure your staffing agency has an employee liability policy that won’t expose you to any dangerous risks or unpleasant surprises.