While there are many types of liability insurance any given business may choose from to protect property and assets, there are three critical pieces of coverage to consider when buying staffing agency insurance. The combination of these three types of liability provides thorough coverage for a wide variety of risks and exposures.

1. Commercial General Liability

Commercial general liability (CGL) is a common policy for all businesses. Briefly, it addresses coverage against financial loss due to two areas of risk. The first is bodily injury or property damage caused by an accident on the job. The second part is concerned with damages for offenses such as false arrest, slander or libel, among other exposures.

2. Temporary Staffing Liability

This coverage is designed to expand staffing agency insurance in order to cover the gaps in CGL for temporary labor. Clients CGL policies generally cover leased employees, but not temporary workers. Staffing agencies also receive protection against errors and omissions claims with this type of liability. In the event a client sues over a mistake made by a temporary employee that results in financial loss, the staffing agency is covered.

3. Employment Practices Liability

Neither of the first or second policies provide protection against lawsuits brought against a staffing agency for termination of employment, refusal to hire, discrimination, harassment or retaliation. Claims of this variety can be very costly. Employment practices liability insurance is the third piece of insurance to keep your agency stable in unforeseen circumstances.

 

photo credit: AFGE Environmental Protection Agency Council 238 July 2013 Training (license)
Three Points of Liability for Temporary Staffing