Staffing agencies offer a certain amount of flexibility to an employer with personnel needs. Whether they need to fill the spot of an employee on extended sick leave, an injured employee, or one out for maternity leave, there are agencies that cater to businesses dealing with both, short-term and long term vacancies. The advantages of outsourcing labor have led this industry to grow to be a multi-million dollar industry in recent years.
Companies appreciate the ability to quickly ramp up production or bring in a specialty employee for a short-term contract. Employees say they also use temporary staffing as a bridge to full time employment. Professional Employment Organizations (PEOs) are a relatively new industry, only having started in the late 1970’s, but their popularity has soared.
Employee exposures require the protection of insurance
Temporary staffing agencies are a bit unique when it comes to insurance. Depending upon your type of staffing agency, workers compensation and/or professional liability are some of your largest expenses. They are also some of your biggest exposures, which is why staffing insurance is so important.
Staffing agencies vary more than most other kinds of businesses, since some cater to businesses requiring staff office workers only, while others specialize in staffing professionals, such as lawyers or doctors, and then there are those that staff lumber yards, manufacturing, construction, and sawmills. Regardless of the type of staffing agency you need an agent with the expertise to properly advise how to best protect your investment.
Though staffing and PEOs are such large industries, very few receive the insurance expertise these employment companies need. Underwriters want answers to questions like, “What will the employee be doing at the job site? How long will they be there? Do they have the proper training? Is the job site safe?” This may concern some insurance carriers, which makes selling staffing insurance a job for those who specialize in this dynamic industry.