Group of people sitting at the table and discussing staffing agency insurance programs.

Do You Have Gaps in Your Staffing Agency Insurance Program?


As a staffing agency owner or manager, you know the importance of having a team of qualified and talented employees to provide the services your clients need. But have you considered the insurance coverage that protects your agency from potential risks and losses?
Let’s explore the essential coverages that all staffing agencies or temp agencies should purchase, as well as some common gaps in an insurance portfolio of which you should be aware.

Essential Coverage for Staffing Agencies

Yes, you need insurance to run your business, but where should you start. Remember, your business is different from every other in the area. Even so, all staffing agencies or temp agencies should purchase:

• Professional Liability insurance: Liability insurance protects your agency against claims of negligence or errors and omissions that result in financial harm to your clients. This coverage is critical to protecting your agency’s reputation and assets.
• Workers’ compensation: Workers’ compensation insurance provides benefits to employees who are injured or become ill as a result of their job. This coverage is required by law in most states and helps to ensure that employees receive prompt and appropriate care.
• General liability and property coverage: You need coverage that protects your business from claims of injury, illness, or damage caused by your team or the work you do.
• Cyber insurance: You need protection from hacking attacks and the significant losses that could occur.
• Commercial auto: If your business owns or operates vehicles, you must insure them accordingly.

These coverage types protect your agency against various types of claims, from client lawsuits to employee injuries, and other significant claims. At the same time, you might find gaps that could cause issues when a claim is filed. Absent-mindedly buying or renewing insurance once a year isn’t enough.

Common Gaps in Insurance Coverage

Even with liability, workers’ compensation, property, cyber insurance, and more,
there may still be gaps in your coverage. This is why assessing your coverage each year
and working with Liberty to track your claims is so important. For example:
• Low limits on liability insurance: If your liability insurance limits are too low,
you may not have enough coverage to cover the full amount of a claim. Make
sure that your limits are high enough to protect your agency against significant
financial losses.
• Inadequate coverage for unique claims: Some claims, such as allegations of
discrimination or harassment, may not be fully covered by standard liability
insurance policies. Make sure that you cover adequate coverage for any unique
claims that could arise, especially if you support niche industries or businesses.
• Coverage that does not fully protect temps in all situations: Temps may work
in hazardous conditions or be at risk of injury while on the job. Make sure that
your insurance coverage fully protects temps. Reviewing your coverage
carefully with our agents will help you ensure you get what you pay for.

Saving Money and Reviewing Your Coverage

As a staffing agency, you need to balance the need for protection with the cost of
insurance coverage. The good news is that you can save money on an insurance
portfolio even as you seek out adequate protection. You can:

• Adjust your deductibles: Increasing your deductibles can lower your insurance
premiums. However, be careful not to set your deductibles too high, as this
could cut significantly into a payout.
• Drop coverage that you no longer need: If you no longer need certain types of
coverage, such as umbrella coverage when the average claim in your
sector/region is just not all that high.
• Scale coverage to meet the changing needs of your business: As your business
grows, your insurance needs will change. Make sure that your coverage
increases or decreases with your business each year.
• Review your insurance portfolio annually: Reviewing your insurance portfolio
annually helps you identify any gaps in your coverage and take steps to fill
them. This review can also help you save money by switching carriers,
adjusting limits, etc.

Contact Liberty for Help with Staffing Agency Insurance

If you’re looking to protect your staffing agency from potential risks and losses, reach
out to Liberty for help with insurance for your staffing agency. Our friendly and
experienced staff can help you:
• Review your current policy
• Write new coverage
• Access the best carriers in the industry
Don’t let gaps in your coverage put your business at risk. Contact us today to learn

Looking for insurance for your staffing agency?

See how Liberty can provide your business with great coverage and great rates.

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