As a staffing agency, you play a crucial role in connecting employers with qualified candidates.
However, this unique position also comes with significant risks, from workplace injuries to hiring disputes and cyber threats.
The right insurance coverage can help protect your business from financial losses and legal challenges.
Coverage for Staffing Agencies
Several coverage options can be added to your business insurance policy to help manage financial risks. Some of the key exposures currently drawing attention in the marketplace include:
Workers Compensation Insurance:
Workers' compensation insurance provides benefits to employees to assist with recovery from work-related injuries or illnesses. It can also offer benefits to employees' families if they pass away in a workplace accident. Different factors, such as job risk, claims history, and payroll size, can affect workers' compensation costs.
General Liability Insurance:
When placing employees at multiple job sites, staffing agencies need protection against third-party claims of bodily injury, property damage, and personal injury. General liability insurance helps cover legal fees and settlements, providing financial protection if your business is held responsible for an incident at a client’s workplace.
Cyber Liability Insurance:
Cyber liability insurance can help your business respond to a data breach if personally identifiable information is compromised. Some policies include extortion coverage, business income protection, and system failure coverage resulting from a breach.
Employment Practices Liability (EPLI)
Staffing agencies regularly make hiring, termination, and placement decisions, exposing them to potential employment-related claims. EPLI can help protect against allegations of wrongful termination, discrimination, harassment, wage disputes, and other employment-related issues.
Professional Liability Insurance:
If a client claims that your agency misrepresented a candidate’s qualifications, failed to conduct proper screenings, or made a placement error that led to financial loss, professional liability insurance can help cover legal expenses and damages.
Business Property Insurance:
Business property insurance covers equipment, signage, inventory, and furniture against losses from fire, storms, or theft. However, it typically does not cover mass-destruction events like floods and earthquakes.
Why Staffing Firms Choose Mason-McBride
With over 100 years of experience, Mason-McBride understands the unique risks staffing agencies face. Our team helps you navigate coverage options designed to address liability concerns, compliance challenges, and industry-specific exposures.
Get Started Today
Connect with Mason-McBride to explore your options.