Staffing firms are exposed to many unique types of risk. This is particularly the case when a firm places temporary workers. These firms should contact an insurance provider with experience in adjusting liability policies to provide temporary staffing insurance solutions.
The Limits of Commercial General Liability Policies
Commercial general liability (CGL) policies are among the most basic business insurance plans, but they have some limitations. Even if a staffing firm is well-protected with a CGL policy in addition to professional liability and employment-practices liability insurance, the temporary workers they place are likely excluded from coverage under these plans.
Leased Versus Temporary Workers
Standard CGL policies cover permanent employees and leased workers. A leased worker is hired out by a firm that leases labor, whereas a temporary employee is provided for the express purpose of standing in for a permanent employee or meeting a seasonal or short-term need. Leased workers can be covered under general liability policies, but temporary workers will require an endorsement.
Managing the Risks of Temporary Workers
An insurance provider that specializes in temporary staffing insurance can modify an employment-practices liability insurance policy to cover these workers. An endorsement can help to protect staffing firms against exposures and prevent temporary workers from falling into a gap in coverage.