The 5 Most Important Kinds of Staffing Insurance

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Your company provides people to work at your clients’ businesses, but you are responsible for their actions and for protecting them from workplace injuries, illnesses and discrimination. You need these five kinds of insurance to protect you.

1. General Liability Insurance

This insurance protects you against claims that your employee(s) caused bodily injury and property or other damage while at your clients’ businesses.

2. Professional Liability Insurance

This insurance protects you against claims that your clients suffered financial loss as a result of your placement of or the work performed by your employees.

3. Workers’ Compensation Insurance

Staffing companies face unique issues that differ from traditional programs. Statutory work comp provides medical coverage and income replacement to employees who are injured or become ill at work. Staffing Worker’s Compensation Insurance covers:

  • Lost wages from being unable to work
  • Medical expenses
  • Permanent disability
  • Rehabilitation
  • Death benefits

4. Employee Benefits Liability Insurance

Under the Affordable Care Act, if you have over 50 employees you must offer heath insurance benefits to those who work over 30 hours a week. Since your employees may not consistently work 30+ hours a week, this mandate puts you at risk for errors and omissions. Staffing Employee Benefits Liability Insurance protects you against negligent acts in the administration of your employee benefit plan.

5. Employment Practices Liability Insurance

This insurance protects you from claims of discrimination, sexual harassment, wrongful termination, etc. by:

  • Applicants
  • Employees, including those in-house
  • Clients

These five kinds of temporary staffing insurance address the major responsibility and protection issues that arise in your business.

Three Must-Haves for Staffing Agencies

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Managing the day-to-day operations of a staffing agency comes with its fair share of challenges. You may be trying to juggle training, client relations and scheduling at any given moment. With all of these responsibilities and more, it can be easy to overlook some of the most essential aspects of the job. There are three important elements, however, that are must-haves for any staffing agency.

  • Temporary staffing insurance: This is an essential for many reasons. Temporary staffing insurance offers protection that traditional insurance typically does not, including coverage for temporary staff and incidents that occur on clients’ grounds.
  • Vendor management services: A good VMS system is an absolute necessity to managing interactions with vendors and scheduling staff for shifts at their facilities. This system is the touch-point for all data entry for clients and staff, too.
  • Liability protocol: A staffing agency deals with plenty of liability on a day-to-day basis. In addition to that posed by staff, you may assume liabilities present at clients’ facilities, too. Always keep protocol at the forefront of situations where liabilities come to fruition.

Staffing is a challenging sector to work in, but with the right tools, you can effectively manage the many responsibilities. Investing in temporary staffing insurance can cover many of the risks you encounter.

Why Having Temporary Employees Requires a Different Insurance Approach

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The temporary staffing industry is a unique market for risk managers to examine. Permanent employees work alongside people who may not be in the office for more than a couple weeks. Although their skill sets may similar, their levels of investment in the work and the company are bound to be vastly different. This plays out in a number of ways that could relate to temporary staffing insurance policies and help explain why temporary employees justify a different insurance approach.

Less Workplace Training

With companies cutting budgets, seasonal employees come on board to help with big projects or seasonal pushes. Yet those temporary employees do not have the advantage of ongoing education that permanent employees have. In a potentially dangerous workplace like a machine shop or a warehouse, this can cause problems. Thus, worker’s compensation or general liability policies for temporary staffing insurance packages may need to be a little different than those for long term employees.

Less Time to Build Relationships

Because temporary employees generally get hired when there is a work crunch, there is little time for them to slowly work into the position. They need to get going right away. This can cause stress. And veteran employees may get frustrated when the new guy on the block doesn’t understand company policies and procedures. Stress can develop, and this can be the basis for conflict, which could in turn lead to harassment going in either direction, or even discrimination. Because lawsuits of that nature can really affect a company’s bottom line, a good employment practices policy is a key part of a unique portfolio of temporary staffing insurance policies suitable for companies with temporary employees.