Staff insurance takes a little more consideration than similar coverage packages for other companies. Staffing services need some of the same types of coverage as any professional service, such as worker’s compensation insurance and medical insurance for administrative personnel. However, there are also some risks unique to the industry that only an experienced insurance provider will be prepared to handle. For example, employee error is one of the most common pitfalls of staffing agencies.
Like it or not, there’s usually no real way to tell whether or not your employees have represented themselves honestly on hiring documents, like their resume or CV. Employees eager to get a job have been known to exaggerate everything from the importance of their former positions to their education. However, your clients expect you to hire only the most qualified personnel for them. You might be liable in the event that one of your staffers’ dishonesty causes damage to a client. Staff insurance doesn’t prevent this from happening, but it can mitigate some of the costs of the allegations or court proceedings.
Whether or not your employees were dishonest in the initial hiring process, errors they are alleged to have caused can reflect poorly on you. They can also be costly. Get staff insurance, and stay in business despite these situations.