Employment & Staffing Agency Insurance

Because of the work they do, employment agencies have a lot of potential liabilities. Connecting employers with employees means a staffing agency has obligations to both parties. If something goes wrong, the blame and financial responsibility might fall on you.

Let’s take a look at some employment agency insurance policies that can help address your most pressing risks.

General Liability Insurance

General Liability Insurance is usually the first policy most businesses buy, and for good reason. It covers many of the basic liability issues that crop up while doing business. For example, can help cover lawsuit costs when your agency is responsible for:

• Third-party injuries, such as a job candidate’s slip-and-fall accident at your office.
• Third-party property damage, such as when a temp drops a client’s laptop.
• Advertising injuries, such as using a copyrighted photo on your agency’s website without permission.

Even if these incidents don’t lead to lawsuits, your policy can help resolve the issue quickly. For example, if someone who doesn’t work for your agency is hurt at your office, General Liability can usually pay for their immediate medical expenses. This financial flexibility may help you control a situation before it grows into a lawsuit. Plus, this policy won’t set you back much. Staffing agencies typically pay around $35 a month for this coverage.

Business Owner’s Policy

A Business Owner’s Policy (BOP) combines General Liability Insurance with Commercial Property Insurance. This is a convenient way to purchase affordable staffing agency insurance because bundled policies are usually offered at a discounted rate.

In addition to the protection General Liability provides, the Commercial Property Insurance portion of your BOP can cover your office building (if you own it) and business property when it’s damaged by:

• Fire.
• Theft.
• Windstorms.
• Vandalism.

Note: Most BOPs don’t offer coverage for flood or hurricane damage. Talk to an agent about your property protection options if you live in an area where these events are a big risk.