Staffing firms are responsible for placing contract employees in a variety of industries. Temporary workers are found in job placements such as industrial, clerical, and medical. While mistakes and lawsuits happen in every industry, mistakes and losses caused by temporary employees are cause for a more specific type of insurance called temporary staffing insurance. Within this precise insurance, there are three categories: placement, work performed, and services provided. Here is an explanation as to why each type is needed.
This category under temporary staffing insurance covers every issue regarding placement of the contract employee. Failure to place a worker with a company, providing the wrong type of worker to a company, improperly screening a worker, and a worker suing the staffing firm for misrepresenting a company are all situations that fall under this category.
The staffing firm is responsible for the job done by the temporary employee. If the worker fails to do the job correctly or causes any type of financial loss to the company, it is covered under this category of insurance.
This category covers any additional services that the staffing agency is providing to the temporary worker. Any services that go above and beyond specific placement in a job (e.g., consulting activities) can result in mistakes and omissions.
When seeking out temporary staffing insurance, be sure that your policy covers all three areas mentioned above.