The staffing industry has unique exposures that most other businesses don’t. In addition to having to protect themselves in the event of bad hires, staffing agencies also have to protect themselves from regulatory violations throughout multiple industries. It can be a lot to keep track of, but by working with the right staffing agency insurance company, you can protect your business against those exposures unique to only your industry.
When an in-house HR department makes a bad hire, the consequences of that bad hire fall back on the company. However, when a staffing agency makes a bad hire, it’s the agency that is at fault. If your agency makes a bad placement, you may be accused or negligent hiring or be sued for failing to do the job you were hired to do. A sound insurance policy can cover you for professional liability, so that way, if you are ever faced with a lawsuit, you can rest assured knowing that all attorney fees, settlement awards and other costs are covered.
Unfortunately, staffing agencies are often subject to class action suits, which can be financially devastating for them. If you want to protect your agency from liabilities unique only to your industry, work with an insurance agency that specializes in staffing agency insurance to get the coverage you need today.