Some people mistakenly assume that because a staffing agency hires temporary workers for other companies, that it somehow avoids the onus of insurance coverage. This belief is not true, and the insurance staffing agencies need actually falls into the three main categories explained here.
General liability insurance covers personal injury and property damage that occurs to anyone visiting your property, as well as minor legal issues such as copyright infringement. This type of policy is required of all businesses.
Professional liability extends your protection to a variety of claims made not just by the general public, but also by employees and clients. Examples of situations that invoke this type of policy include the following:
- Unsafe work sites
- Lack of safety inspections
- Placement of unskilled employees
- Insufficient training
- Missed deadlines for employment contracts
- Noncompliance with industry standards
Workers’ compensation protects employees by paying for their medical bills in the event that they become injured at work. As a temporary staffing agency, you are responsible for your workers’ safety and well-being, no matter where you assign them.
While other types of policies, such as auto insurance, may be necessary in certain situations, general liability, workers’ compensation, and professional liability are always necessary policies for a staffing agency.