Staffing agencies have unique needs when it comes to insurance coverage. It’s not enough to simply have a staff insurance policy, agency owners have to understand just what kind of coverage they have so that they can be sure that they have the right kind. Professional liability is one of the largest areas of risk and financial expense for staffing, recruitment and temp agencies.
Know Your Coverage
The fact of the matter is that many agencies are under the impression that their current general liability policy will also provide them with professional liability coverage as well, which is not the case. A majority of general liability policies actually have a professional liability exclusion.
Your agency’s level of exposure when it comes to professional liability depends on the type of employees you staff. For instance, if you staff paralegals, medical professionals and the like, your level of professional liability will be higher than if you were to work with construction workers or call center employees. That being said, blue collar jobs can come with just as much risk as high profile professions. What if a truck driver were to cause a serious accident, accidentally run over an expensive luxury vehicle or even run over a person? Any of these instances could be considered as a professional service that your agency provides, which means that the instance may not be covered by your general liability coverage.
Make sure that you know what is and what isn’t covered by your staff insurance policy before you actually need to make a claim. The best time to prepare for a disaster is well before it happens.