Staffing firms have been placing people jobs for decades. The industry has changed, as the business world has changed continually. With greater regulation and more litigation in recent decades, a staffing firm, like any other company, needs to protect its own interests. That’s where staffing insurance comes into play. This is a unique industry, and at one point, there were no insurers catering to the industry. That has changed. Now there are full service providers offering a variety of policies:
- Employment practices liability
- Employment benefits liability
- Worker’s compensation
- Direct hire/personnel consultants liability
Employment Practices Liability Policies
This covers a lot of ground and has become more important in recent years. It protects the staffing firm against claims of wrongful termination, discriminatory actions in the workplace, as well as sexual harrassment. It covers employees and applicants who make claims against the staffing firm as well as for employees or contractors put in client’s work place environment. This is an essential piece of staffing insurance.
Why the Staffing Industry is a Unique Insurance Challenge
One reason the staffing industry is unique is because of the differ levels of employees. There are permanent employees, contract employees who have a chance to get hired permanently, and then there are contract employees who clearly temporary. Because the staffing firm is placing three types of employees under the supervision of another firm, insuring each employee has its challenges. A respected insurance company is the best bet to ensure minimum effects from any tort claims.