Choosing insurance for temporary staffing firms can get overwhelming for newcomers because of the special circumstances that they face. Not only must they have coverage to protect against their own actions, but also to protect against the actions of their clients and temporary employees. Here are two examples of how this can play out.

Professional Liability

Also known as errors and omissions insurance, professional liability insurance protects you in instances where a third party claims that an error on your part led to them experiencing a loss. For a staffing firm, this can happen if a client claims that the employee you hired caused them to incur financial loss or if the employee claims that you misled them about the role for which you hired them.

Employment Practices Liability

Another example is employment practices liability which covers you against claims that your workplace practices were inappropriate or even illegal. As a staffing firm, an employee that was released prior to his or her contract ending may file such a claim against you or your client. In either case, you may be liable for damages and your policy would cover your expenses.

To ensure that you’re properly covered, its best that you work with an agent who understands insurance for temporary staffing firms. There’s too much at stake to take a chance at having too little coverage.