If you own or manage a staffing agency, chances are you need to have some type of employment agency insurance. This insurance not only protects the employees that you place and the businesses in which you place them, but it can also protect your agency from liability and lawsuits arising from actions by employees you place or employees acting on behalf of your agency.
One of the most important types of insurance that a staffing agency may need is coverage for mistakes and negligence of employees placed with contract employers. This may be of importance for companies that place medical professionals, such as physical therapists, nurses and others who have direct patient contact. These positions have the risk of causing physical harm to the patients whom they treat. Other professions include, but are not limited to, financial and legal placements. These positions could cause financial harm or legal problems from mistakes or negligence of the employees. In general, any placement that has the potential to cause a significant loss for an employer, or those whom the employer serves, should probably be insured.
Staffing agencies may recruit and place thousands of staff with a multitude of businesses. Each placement carries with it a risk to both the business and the staffing agency. A good employment agency insurance policy can be essential in protecting the staffing agency and the contract employer.