Temporary Staffing Insurance Policy Information
Temporary Staffing Insurance. When a company needs workers temporarily, they seek the help of a temp agency. With these services, a company can get workers for limited periods of time to assist in a business. Persons who referred to a job are employees of the temporary staffing agency. As with any other business, there are risks involved with running a staffing agency.
For this reason, it's important to invest in commercial insurance for your business. Having temporary staffing insurance provides you with protection if there's a lawsuit against your business.
Temporary staffing insurance protects your agency from lawsuits with rates as low as $87/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked staffing insurance questions:
- What Is Temporary Staffing Insurance?
- How Much Does Temporary Staffing Insurance Cost?
- Why Do Temporary Staffing Firms Need Insurance?
- What Type Of Insurance Do Temporary Staffing Firms Need?
- What Does Temporary Staffing Insurance Cover & Pay For?
What Is Temporary Staffing Insurance?
Temporary staffing insurance is a type of insurance coverage designed for businesses that use temporary or contract employees. It provides protection for employers against various risks associated with using temporary workers, including accidents, injuries, and liability claims. The insurance policy covers the cost of medical expenses, legal fees, and compensation payments in the event of a claim or lawsuit.
This type of insurance helps protect employers from financial losses and protects the temporary workers by providing benefits and coverage that they may not otherwise receive as non-permanent employees.
How Much Does Temporary Staffing Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small temporary staffing businesses ranges from $87 to $119 per month based on location, size, payroll, sales and experience.
Why Do Temporary Staffing Firms Need Insurance?
Temporary staffing firms need insurance for several reasons, including:
Liability Protection: Staffing firms are responsible for the workers they provide to clients. In the event of an injury or damage caused by a temporary worker, the staffing firm may be liable. Insurance can provide protection against such claims and help cover the costs of legal fees and settlement.
Workers' Compensation: Staffing firms are required by law to provide workers' compensation insurance to their employees. This insurance covers medical expenses and lost wages if a temporary worker is injured on the job.
Unemployment Insurance: Unemployment insurance protects staffing firms against the costs of unemployment claims made by former temporary workers. This insurance can help cover the costs of paying unemployment benefits to eligible workers.
Professional Liability Insurance: Professional liability insurance provides protection against claims of negligence, errors, or omissions made by clients against the staffing firm.
Cyber Liability Insurance: As more and more staffing firms rely on electronic data to manage their operations, cyber liability insurance has become increasingly important. This insurance provides protection against losses resulting from data breaches, cyber attacks, and other online threats.
In summary, temporary staffing firms need insurance to protect against a range of risks and to comply with legal requirements. Having insurance can help ensure the financial stability and longevity of the business.
What Type Of Insurance Do Temporary Staffing Firms Need?
A lawsuit can destroy your business, which is why it is important for you to have insurance. The first thing you must do is find out what are the different insurance policies available and which ones are best suited for your business.
Before speaking with an insurance agent, it's a good idea to know the different types of temporary staffing insurance policies that are available. Here are some of the more common coverages:
Commercial General Liability Insurance: Having this temporary staffing insurance protects you from third-party bodily injury and property damage claims. It's important for your policy to identify that your business is a temporary staffing agency and not an employment agency.
Employee Theft and Crime Coverage: With this insurance, your staffing company is covered when employees or other persons commit theft and other fraudulent acts. Theft in your business can cause lots of financial damage which makes having this type of insurance important for your business.
Employment Practices Liability Insurance: If you want to protect your temp agency from discriminatory action claims, then having this insurance is crucial. Whether an employee or past employee claims sexual harassment or wrongful termination you are covered by having this type of temporary staffing insurance for your business.
Professional Liability Insurance: Professional liability insurance otherwise known as errors and omissions coverage covers your staffing agency when lawsuits are made against your business due to negligence. If you fail to provide a qualified person for the job or you don't perform the necessary background checks, and you cause damage to another business you can be held liable. With professional liability insurance, the costs associated with such a lawsuit will be covered.
Workers Compensation: Having this policy for your business provides your employees with protection if they are ever injured while working for you or another company. A staffing agency should have workers comp coverage for their in-house employees as well as other staff they deploy to other businesses.
With workers compensation, employees who are injured while on the job will have their medical expenses covered regardless if it was their fault or not. This insurance also covers costs if an employee is unable to work because of injury. An added benefit of having this type of insurance is when an employee is injured and die as a result of the injury this insurance pays benefits to the surviving members of their family.
Having this insurance for your business gives your employees a sense of safety when working for your staffing firm. Another thing to note is that different states have different laws and some of them might require you to have workers compensation insurance before operating.
Commercial Auto: Most businesses have vehicles they use for daily operations. While on the road there is always the risk of an accident happening with your company vehicles. With this in mind, it's important to protect your business vehicles by having auto liability insurance. Having this insurance covers your vehicle if they damage another vehicle or the property of a third party.
What Does Temporary Staffing Insurance Cover & Pay For?
Temporary staffing firms can be sued for various reasons, just like any other business. Some common reasons include employment-related issues, negligence, and breach of contract. Insurance policies can help protect these firms by covering legal costs, settlements, or judgments that may result from such lawsuits. Here are a few examples:
Employment discrimination: If a temporary staffing firm is accused of discriminating against a candidate or employee based on race, gender, age, disability, or other protected categories, they may face a lawsuit. Employment Practices Liability Insurance (EPLI) can help cover legal defense costs, settlements, and judgments in such cases.
Wage and hour disputes: Temporary staffing firms may be sued if they fail to pay employees according to federal, state, or local wage and hour laws. EPLI can also help in these situations, covering legal costs and any monetary damages awarded to the claimant.
Workplace harassment: If a temporary worker alleges that they have been subjected to harassment, such as sexual harassment, while working at a client's site, the staffing firm may be held liable. EPLI can again provide coverage for legal expenses and any settlements or judgments that may result from the lawsuit.
Negligent hiring: If a temporary staffing firm places a worker who subsequently causes harm or injury to a client or third party, the firm may be sued for negligent hiring. General Liability Insurance can help cover legal defense costs, settlements, and judgments in such cases.
Breach of contract: If a temporary staffing firm fails to fulfill the terms of a contract with a client, they may face a breach of contract lawsuit. Professional Liability Insurance (also known as Errors & Omissions Insurance) can help cover legal expenses, settlements, and judgments that may arise in these situations.
Worker's compensation claims: If a temporary worker is injured on the job and the staffing firm is found to be at fault, they may face a worker's compensation lawsuit. Worker's Compensation Insurance can help cover medical expenses, lost wages, and legal costs associated with such claims.
In summary, insurance policies can provide financial protection for temporary staffing firms in the event of various types of lawsuits. It is crucial for these firms to carry appropriate insurance coverage tailored to their specific risks and needs.
Commercial Insurance And Business Industry Classification
- SIC CODE: 7361 Employment Agencies
- NAICS CODE: 561320 Temporary Help Services
- Suggested Workers Compensation Code(s): 8810 and others
Description for 7361: Employment Agencies
Division I: Services | Major Group 73: Business Services | Industry Group 736: Personnel Supply Services
7361 Employment Agencies: Establishments primarily engaged in providing employment services, except theatrical employment agencies and motion picture casting bureaus. Establishments classified here may assist either employers or those seeking employment.
- Chauffeur registries
- Employment agencies, except theatrical and motion picture
- Executive placing services
- Labor contractors (employment agencies), except farm labor
- Maid registries
- Model registries
- Nurses' registries
- Ship crew registries
- Teachers' registries
Temporary Staffing Insurance - The Bottom Line
When operating a staffing agency, there are always risks involved. You don't have to worry as much about the risks if you get the right insurance for your temp agency. If you have the right insurance for your business, you can protect yourself from lawsuits that can ruin your business.
Additional Resources For Professional Services Insurance
Get informed about small business professional services insurance, including Professional liability, aka errors and omissions (E&O insurance), that protects your business against claims that a professional service you provided caused your client financial loss.
- Answering Service
- Armored Car
- Attorney Lawyer
- Background Music Services
- Business Consulting
- Chemical Engineers
- Civil Engineers
- Claims Adjuster
- Commercial Laundries
- Commodity Broker
- Corporate Wellness
- Court Reporter
- Credit Bureaus
- Debt Collection Agency
- Detective Agency
- Diaper Services
- Electrical Engineering
- Environmental Consultant
- Executive, Career & Life Coaching
- Executive Search Firm
- Expert Witness
- Financial Planner
- Financial Services
- Funeral Directors
- HR Consultant
- Inspection Bureaus
- Insurance Agents & Brokers Insurance
- Mediator - Arbitrator
- Medical Billing
- Music, Drama & Dance Therapy
- Office Machine Repair & Maintenance
- Piano Tuners
- Project Management
- Safety Consultants
- Speakers Bureaus
- Tax Preparer
- Temporary Staffing
- Title Abstractors
- Valet Parking
- Specialty Consultants
- Specialty Service Business
The professional services industry, which includes occupations such as lawyers, doctors, accountants, and architects, often deals with sensitive and complex issues that carry a high risk of liability. These professionals are expected to provide their clients with expert advice and guidance, and any mistakes or oversights can result in significant financial consequences for both the client and the professional. This is where insurance comes into play.
Business insurance provides protection against the financial repercussions of potential mistakes or accidents that may occur while providing professional services. For example, a lawyer may make an error in their legal representation that leads to a financial loss for their client. Without insurance, the lawyer would be personally responsible for covering the cost of this loss. Insurance helps to protect professionals from these types of financial burdens and allows them to focus on providing high-quality services to their clients.
In addition to protecting against financial losses, commercial insurance can also provide legal defense for professionals facing legal action as a result of their work. This can be especially important for professionals in high-stress or high-risk fields, such as doctors or architects, who may be at a higher risk of being sued for professional negligence.
Overall, the professional services industry needs insurance to protect against financial losses and legal action, ensuring that professionals can continue to provide high-quality services to their clients without the added stress and burden of potential financial consequences.
Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Accounts Receivable, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Professional Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Equipment Breakdown, Flood, Computer Fraud, Forgery, Money and Securities, Special Floater, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.