Staffing agencies are unique in their insurance needs, and because of the dynamic nature of their industry it has been problematic to obtain insurance in the past. In fact, not more than 50 years ago it was downright impossible to have an insurance carrier grant a policy to a staffing agency. The staffing agencies had no specific policies available to them largely because insurance companies didn’t understand their industry, and could not write policies to provide them with the coverage they needed. Today, however, both the staffing agency and the insurance industries understand with more clarity what needs are to be addressed, making employment agency insurance policies more widely available.
What A Staffing Agency Policy Might Cover
As with a standard homeowners’ policy, a staffing agency policy can offer standard insurance specific to the staffing industry, but additional endorsements can be purchased to increase the insurance coverage that a company may want to have. The following examples are common types of employment agency insurance policies that can protect staffing companies:
- Abusive Acts Liability
- Crime
- Cyber Liability
- Direct Hire
- Directors & Officers
- Employee Benefits Liability
- Fiduciary Liability
- General Liability
- Hired and Non-Owned Auto Liability
- Office Package
- Owned Auto Liability
- Professional Liability
- Property and Inland Marine
- Stop Gap Liability
- Umbrella Liability
- Worker’s Compensation
Insurance Companies and Staffing Agencies Working Together
The only way industry specific insurance could become available to staffing agencies was through educating insurance companies about staffing agencies, and educating staffing agencies about insurance needs. Fortunately today there is coverage available for employment agencies that are in need of customized policies.