Businesses thrive in the course of providing other companies with the products they need to function. Companies that are in the business of supplying firms with staff are meeting the same need, essentially–providing human resources to various industries in order to get the job done, whether for just a short stay (say, while an employee is out on short-term disability for a hip replacement or maternity leave) or for months or even years at a time if for whatever reason a permanent direct hire cannot be made. An agency is experienced in developing a pool of talent and pairing good workers with companies that need their expertise; however, sometimes even the experts aren’t able to predict when a recently placed employee will bolt with little or no notice. The true reason may be hard to discern–maybe the employee didn’t like the work or the people, didn’t like the paycheck or the commute, or got a better offer elsewhere. Whatever the cause, such an unexpected departure can at least cause a headache for the placing firm, or at worst (depending on the reason for departure) even leave it open to an employment agency insurance claim.
Fortunately, companies can count on the coverage to protect them in the course of conducting the business of connecting employees and employers. The coverage provides the agency with valuable protection for professional liability claims in the event it is faced with a lawsuit claiming wrongful acts, errors or omissions have been committed–either by the firm itself or the employee it placed with a company.
Read the terms of the hiring contract
While leaving a job unceremoniously may or may not trigger a claim, it can nevertheless put the firm in an awkward position with the hiring company which has spent time (and thus, money) bringing in the employee, training him or her, setting up accounts and passwords, and so on. Having to start all over again with yet another person is disruptive at best, and the idea that the person who was there for just a short time (but long enough to glean proprietary or sensitive information) may have gone to work for a direct competitor is of concern and could potentially leave the agency in a position of exposure.
In today’s litigious climate, it’s simply not worth the risk to operate without this important coverage. Talk to a professional insurance agent today to learn more about employment agency insurance–and counsel new hires to communicate their intentions so that if necessary, they can leave a job on the best terms possible.