In many ways, a staffing agency is just like a traditional business in that it must protect its property and its permanent employees. However, because staffing agencies work so closely with individuals and other companies, they also need other types of staff insurance.
Errors and Omissions Insurance
Staffing agencies are responsible for providing thorough checks on the temporary employees they place within companies, including verifying references and education and doing criminal background checks. Should an employer find out the employee’s information was incorrect, the agency can be blamed. Errors and omissions insurance protects the agency if the employer alleges verification was inadequate.
Stop Gap Insurance
Staff insurance should include a stop gap policy. This protects them in the event that a temporary employee accuses the staffing agency of placing him or her in an unhealthy work environment. It provides liability in case an employee suffers an injury or contracts a disease.
If a temporary employee steals from his or her employer, the staffing agency that connected the two could be held liable. Crime insurance protects the agency by covering theft for both the client and the staffing agency. It can cover everything from basic inventory theft to complicated embezzlement schemes.
When choosing staff insurance, hire an agency that has experience in representing such a unique industry. A good insurance agency will be licensed and have excellent reviews from other customers.