Running a staffing agency is a big job, especially if the agency is rapidly growing and constantly interviewing employees or contracting them out to various businesses. Most staffing agencies hire a large amount of employees due to the nature of their business. Each time an employee is hired or contracted to another business, the risk of employee lawsuits against the staffing agency increases. That is why it is important for them to purchase the right types of insurance coverage, including employment agency insurance.
Common Insurance Coverage Types
Most businesses know about general liability insurance coverage and property coverage. However, employment agency insurance is not quite as well-known. This type of insurance coverage is designed to protect staffing agencies from common risks that they face due to their unique field of business. The right insurance coverage can protect against many different situations, including:
- Allegations of harassment
- Discrimination claims
- Wrongful termination lawsuits
- Breach of contract allegations
Without proper insurance coverage, staffing industries could find themselves facing financial ruin due to a single claim against them.
Finding the Right Coverage
Every business faces a variety of risks on a daily basis, which is why it is important to receive coverage that is based on their unique needs. Insurance companies can sit down with staffing agencies and select employment agency insurance policies that will adequately cover specific risks that they face as part of their unique line of business.