Staffing insurance is a critical type of coverage for many different businesses. But what exactly is this insurance, and what type of businesses need it? Here’s a quick introduction.
Staffing insurance is meant for staffing agencies, or businesses that help provide employees to other businesses. For example, if a company needs temporary labor, has a critical vacancy that must be filled for a short period, or needs a one-time agreement for a specific job, then a staffing agency can help them find the right employee. Some staffing agencies might be combined with a PEO (professional employment organization), which offers HR services to certain businesses.
Why do these agencies need special insurance? Staffing coverage is designed to protect them against problems that are unique to an industry. For example, if evidence of malfeasance is found for an employee provided by a staffing agency, the business that has bene hurt might sue the staffing agency. Whether justified or not, these legal fees and related costs can be astronomical. Additionally, there are specific regulations that staffing agencies must fulfill, many of which have to do with insurance and require special coverage.
If you run or own a staffing agency, then having staff insurance is absolutely critical. Find an insurance provider that can help you protect your company.