As a staffing agency, you have the responsibility to ensure the safety and well-being of your employees while they are on the job. However, it is not always clear what insurance coverages you should provide for them and the business. Read further to look into the essential insurance coverage that all staffing agencies should carry, as well as coverage that may not be necessary.
Mandatory Coverage for Staffing Agencies
- Workers’ Compensation Insurance: This coverage is mandatory in most states and provides benefits to employees who are injured or become ill as a result of their job.
- General Liability Insurance: This insurance policy protects you against claims for property damage or bodily injury, which could occur at any time because you have employees working in varying locations and situations.
- Professional Liability Insurance: Also known as errors and omissions insurance, this coverage protects you against claims of professional negligence, such as making a mistake in a client’s payroll.
- Cyber Liability Insurance: If your staffing agency stores sensitive data electronically, this coverage is helpful because it covers notifications, forensic investigations, and a legal defense for the business.
Coverage That May Not Be Necessary
Commercial Auto Insurance
If your staffing agency does not own or operate vehicles, this coverage may not be necessary. Remember, there’s no need to go overboard if your employees use their own vehicle.
Disability Insurance
While it is important to provide benefits to your employees, disability insurance may not be necessary if your staffing agency already covers workers’ compensation insurance. If not, you may want to look into disability insurance programs.
How to Save Money on Insurance Policies for a Staffing Agency
Staffing agencies can endeavor to save money on their insurance policies over time by taking a few quick steps that will work for most businesses. Generally, you can save money on insurance coverage with:
- A yearly review of your insurance policies
- Working with our team at Liberty to find the best carriers
- Trimming insurance policies you may not need
- Adjusting limits and deductibles, where appropriate
Contact Liberty for Help With Staffing Agency Insurance
As a staffing agency owner or manager, it’s critical that you understand the insurance coverages you should carry to protect your business and your employees. Reach out to us at Liberty today to learn more about the essential coverages you need along with other policies that you may not require, given the scope of your business.