Employment Agency Insurance Montana Policy Information
Employment Agency Insurance Montana. Employment agencies match job openings with qualified job seekers. They may be compensated for their services by the company with the job opening or by the person seeking employment, on either a commission or flat fee basis. Services commonly offered are placing a worker into a permanent position, finding a specific type of worker for a customer company, providing employers with short-term or temporary help, or providing workers with job counseling.
The worker seeking employment, the company seeking the worker and the employment agency must all fully understand the terms and conditions of the employment arrangement. The contractual agreement should define who is obligated and responsible for providing workers compensation coverage, who pays the fee for the employment arrangement, who handles payment to the employee, who accounts for taxes and other mandatory deductions, and who provides miscellaneous employee benefits, if any, such as health insurance or a 401(k) savings plan.
Finding the right employees is an important part of building a successful business. As an staffing agency, your are responsible for the listing of job vacancies and referring applicants for employment with other firms. The persons referred to these other companies are not employees of the employment agency.
Although this might seem quite simple, many risks come along with operating this type of business. With the risks involved, it is critical for you to get the right employment agency insurance Montana to protect your business. In this post, we'll take a look at how you can get the best insurance for your staffing firm.
Employment agency insurance Montana protects your staffing firm from lawsuits with rates as low as $87/mo. Get a fast quote and your certificate of insurance now.
Risks That Come With Operating Your Employment Agency
The protection of your employment agency is necessary whether you rent or lease office space. While operating your business, you must have the correct employment agency insurance Montana policies in place to protect your business from the risks that come with staffing. Some of the risk you might face include:
- Fire, smoke, weather or other events that can cause damage to your business property
- Slips and falls or any other injury that can happen to clients or employees at your office
- Lawsuits against your business
These are just some of the risks you might face while operating your business that make it necessary for you to have insurance.
Staffing Agency Insurance Basics
Here are some of the primary employment agency insurance Montana policies you can get to keep your staffing agency covered:
Commercial General Liability Insurance - This insurance provides you with protection when a lawsuit is made against your business. Commercial general liability insurance covers any injury or damage you cause to a third party or their property. Whether this is medical expenses or replacing damaged property, having this coverage provide you with the help you need.
Commercial Property Insurance - With this employment agency insurance Montana, you have protection for the buildings and the contents in them that you use for the operation of your business. There is no way to predict what can happen to your staffing agency but you can rest knowing that with this insurance you are protected. With most business property insurance you get business interruption protection. This comes in handy when there is a period that your business is unable to operate as covers the loss of income that a business suffers after a disaster.
Professional Liability Insurance for Employment Agencies - This insurance is also known as errors and omissions insurance provides you with coverage if a client decides to sue yours for negligence on your part. Some of the things that you client can sue you for include:
- Alleged errors
- Actual errors
- Breach of duty
Basically, if you fail to do the proper research and you cause damage to your client's business, then you can be sued. Remember it is your job to get the right person for the job for your customer. Failing to do this could result in your business being sued.
MT Commercial Auto Liability Insurance - For most businesses having a vehicle is critical. With MT commercial auto liability insurance you can keep the vehicles that you use for your business protected. If a vehicle used for your business causes damage to a third party, you will be protected if you have this insurance.
Workers Compensation - Protecting your workers is important... so important that having MT workers comp is required in most states for any non-owner or partner employees. When you have workers' compensation, you won't have to worry if your employees get injured while on the job. If they are injured, and they need to have medical attention for the injury then having workers' compensation coverage will give them the help they need.
Cyber Liability Insurance - In the staffing business it is a sure thing that you will be handling lots of confidential information. This means that you need data protection. Although you may have protection there can still be a chance of your information being hacked. If you are ever hacked, cyber liability insurance to keep your business covered. When there is a breach of the information this will help you with the costs.
MT Employment Placement Agencies' Risks & Exposures
Property exposures are generally limited to that of an office. Ignition sources include electrical wiring, heating and air conditioning systems, wear, and overheating of equipment. Computers and other electronic equipment may be targets for theft.
Crime exposure comes from employee dishonesty. Hazards increase without proper background checks, monitoring procedures, and securing of all records to prevent unauthorized access. All job duties, such as ordering, billing and disbursing should be separate and reconciled on a regular basis. Audits should be performed at least annually.
Inland marine exposures consist of accounts receivable if the agency offers credit, computers, and valuable papers and records for client companies' and job seekers' information. Duplicates should be made and kept in an off-site backup facility for easy reproduction following a loss.
Premises liability exposure is moderate due to the number of clients visiting the premises. The waiting area, interview, and conference rooms must be well lighted with floor covering in good condition. Exits must be sufficient in number, be well marked, and have backup lighting in case of power failure. Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls.
Personal injury liability exposures are high due to the amount of confidential information obtained from job seekers. The agency must take great care to maintain confidentiality when obtaining and releasing information regarding workers and employers.
Professional liability exposure is high. The background, training, and licensing of the agency's own employees should be verified. Employees must be matched with the needs of clients. Misrepresentation by either party may result in allegations of negligence.
Workers compensation exposures are generally limited to office-type hazards. Potential injuries include eyestrain, neck strain, carpal tunnel syndrome, and similar cumulative trauma injuries that can be reduced through ergonomically designed workstations. If workers are leased or rented out, the exposure increases as the company has little control over the client's work premises or hazards. The employment contract should specify whether the employment agency or the client company provides workers compensation coverage.
Business auto exposure may be limited to hired and non-owned (HNOA). The exposure increases if the agency offers shuttles for temporary workers, transport to job interviews, or if employees use their own vehicles for agency business. All drivers must have appropriate licenses and acceptable MVRs. Vehicles must be maintained and records kept in a central location. If the registry provides vehicles to employees, there should be written procedures regarding the private use of these vehicles by others.
MT Employment Agency Insurance
Speaking with an experienced MT licensed insurance agent will help you to figure out what you need protection for in your staffing firm. When you do this, you can find the protection you need and keep your business protected from the risks it faces.
Montana Economic Data, Regulations And Limits On Commercial Insurance
Thinking about starting a new business? Already own a successful business and want to expand your operations? Whatever the case may be, if you want to experience as much success as possible, you are going to want to ensure you choose the best possible location for your specific industry.
No matter how outstanding your goods and services may be, if the area where your business is located doesn't offer a healthy climate that will support your company, chances are you'll struggle to succeed.
If you are thinking about opening up a business in Montana, being familiar with the state's economic trends can help you determine if it's a good location for you. It's also wise to know what type of insurance you'll need to invest in so that you can plan ahead.
With that said, below, we provide an overview of the economic trends in the state of Montana, as well as the commercial insurance requirements for business owners in the Treasure State.
Economic Trends For Business Owners In Montana
As of December, 2019, the Bureau of Labor Statistics reported that the unemployment rate in the state of Montana was 3.4%; that's 0.1% lower than the national average, which was 3.5% at the same time. This rate remained steady throughout the entire 2019 fiscal year, and it is expected to either continue remaining steady or improve in coming years, according to economists.
Unemployment rate is a vital statistic for business owners, as it indicates the job market of a location, which is a strong determining factor in the success of businesses in the region.
There are several areas throughout the state of Montana that are seeing economic booms and where businesses are flourishing. Among those locations include the following cities and the areas that surround them:
- Great Falls
Several industries are seeing substantial growth in MT; however, there are particular sectors that are really thriving in Montana. Among those sectors include:
- Advanced manufacturing
- Hospitality and tourism
- Information technology
- Oil and gas production
- Retail development
If you are considering opening a business in any of the above-mentioned areas, your chances of success in Montana are favorable.
Commercial Insurance Requirements In Montana
The Office of the Montana State Auditor, Commissioner of Securities and Insurance regulates insurance in MT. Montana mandates very few forms of insurance coverage by law. They enforce worker's compensation.
Montana requires you to have worker's compensation insurance if you hire even one employee on a regular basis. This includes part-time employees, family members, minors, and immigrant employees. It is not required for independent contractors or domestic employees, though you should check to make sure any contractors you have are true contractors, and not employees.
Montana also requires all business-owned vehicles to be covered by commercial auto insurance. Other types of business insurance that business owners should carry depend on the specific industry.
Additional Resources For Miscellaneous & Non-Profit Insurance
Find informative articles on miscellaneous businesses including the types of commercial insurance they need, costs and other considerations.
- Adult Daycare
- Agriculture, Forestry, Fishing & Hunting
- Bail Agent
- Control of Well
- Electric Utilities
- Employment / Staffing Agency
- Engraving Business
- Facility Support Services
- Flight Schools
- Hot Air Balloon
- Mail Order
- Oil And Gas Lease
- Personal Concierge
- Photofinishing Lab
- Portable Sanitation
- Printers & Publishers
- Private Water Districts
- Process Server
- RV Parks & Campgrounds
- Security Guard
- Surety Bonds
- Unmanned Aerial Vehicles (UAV) Drone
- Waste Disposal Landfill
- Wedding Planner
An insurance contract is an agreement where one party obligates itself to make good the financial loss or damage sustained by a second party when a designated event occurs. The event must be fortuitous and happen by accident. The named insured must have insurable interest at the time of loss. One final point is that in order for any contract to be considered insurance, there must be a risk of loss.
Fortuitous Event - An occurrence largely beyond the control of any involved party; happening by chance; accidental; for example: fire, lightning, windstorm, explosion or flood.
Insurable Interest - In order to recover from a loss to property, the holder must have an insurable interest in the property at the time of the event or occurrence. An insurable interest is any right, title or interest in property where the holder of that right, title or interest sustains financial loss if the property is damaged or destroyed. Any lawful and substantial economic interest in the safety or preservation of the property from loss, destruction or damage also constitutes an insurable interest.
An entity does not have to be the property owner to have an insurable interest in it. Examples include, but are not limited to, mortgagees, trustees, vendors, lessees and bailees. Insurable interest for any entity must exist at the time the loss occurs.
Risk Of Loss - If property could never be destroyed, there is no risk of loss. If property must necessarily disintegrate or be destroyed, there is no risk of loss. Between these two extremes is the exposure of risk that can be insured.
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