temporary staffing insurance
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Insuring your company and its employees is an important part of caring for a business. Things can go wrong and accidents happen, so having an insurance program that has been carefully tailored to your business’s needs can save you and your company from trouble and financial loss.
In the case of coverage for employees, there are many basic types of policies made to protect them and anything that may poorly affect your business. However, when you have an agency to hire out temporary employees to different clients, some specified temporary staffing insurance is required to cover more than what’s standard.
Why Do You Need Special Insurance?
Most general liability policies that cover qualities such as property, professional acts, crime, etc. often are made to be limited to a specific are. That is, general liability often covers anything that happens within the premises of your business, meaning your company building. However, once an employee is hired out to a client and does work for them, basic insurance does not reach the client’s workplace or company. The temporary employee will not be covered by the client’s insurance, so any harm done or caused by them will have to be paid by your business. Temporary staffing insurance, however, extends coverage to wherever your employee goes to work. It’s safe to consider this type of coverage so that anything going wrong with your employee doesn’t create financial loss for your business.
When it comes to temporary staffing insurance, there are no one-size-fits-all policies. In addition to general commercial and professional liability coverage, placement agencies are often exposed to a variety of risks that need to be assessed on a case-by-case basis. Here are five types of added coverage that temporary staffing agencies can benefit from.
1. Cyber Liability
Cyber liability insurance protects against data breach risks, helping to cover the costs involved in notifying affected clients, investigation, public relations and related efforts.
2. Electronic Data Processing Insurance
EDP insurance covers lost data and associated income related to physical or electronic theft or vandalism, including malware and viruses.
3. Property Coverage
Property liability insurance helps to pay for damage or theft of buildings and contents, including leased or owned office equipment and furniture.
4. Business Auto Insurance
Company vehicles and drivers are insured under business auto coverage. In cases where employees use personal vehicles for business purposes hired or non-owned liability coverage will be required.
5. Business Interruption Coverage
Also known as business income insurance, business interruption insurance protects against profit losses incurred when a disaster-related event ceases business operations.
Functional Policies for a Versatile Industry
Temporary staffing insurance is only as valuable as the policy that underwrites it. If you are in the market for a tailored plan that will serve your business’ needs, make sure to consult a highly rated insurance company with expertise in this challenging industry.
The staffing industry occupies a unique niche in the business world, and insurance carriers don’t always know how to approach it. That’s why it’s important to find specialists who deal extensively in the temporary staffing insurance niche. Having temporary employees is common in the 21st century, but the industry continues to evolve. Globalization and new contract expectations ensure that staffing is not what it used to be. Between temporary employees and direct hires, as well as dealing with multiple firms, potential insurance issues get complex.
Who Needs Temporary Staffing Insurance
Some companies engage in direct hiring out of temporary staffing positions, which creates a unique insurance position. Great temporary staffing insurance can help bridge that gap. Direct hire policies cover the wrongful actions of the insured while they are working in the capacity of a direct hire or replacement position. It protects against claims by both the potential employee and employer. This fits companies that use personnel consulting and direct hires against claims of discrimination or retaliation for whistleblowing. This might include people in some of the following positions:
- Career counseling
- Human resources consulting
- Resume consultation
Coverage Polices in the Temporary Staffing Workplace
There are many ways a workplace can require insurance for its employees and employers. When you have different categories of employees, things get even trickier. Start with general liability, and add auto policies if any driving happens on the job. Other temporary staffing insurance policies might include the following:
- Employee benefits liability , covering negligence in the management of benefits plans
- Employment practices liability, covering allegations of various types of discrimination
- Worker’s compensation, covering lost wages and medical fees from job related accidents
Working with temporary staffing experts ensures that you will get the right combination of policies for your situation.