As unique businesses, staffing agencies experience unique risks related to their industry. As such, some insurance agencies has taken into account the special circumstances of employment agencies to develop appropriate coverage and avoid gaps. This means that staffing agency insurance will have some additional coverage that you may not be familiar with.
Employment Practice Liability
Employment Practice Liability broadens the definition of a claim and extends to clients and employees of the staffing firm who are placed at other businesses. It includes a duty to defend as well as work place torts and wrongful business environment coverage. They are individual policies, with separate limits and deductibles. Some policies make a deductible aggregate available.
Errors and Omissions
Errors and Omissions is also known as professional liability insurance. It is designed to protect staffing agencies from legal claims alleging that services by and placement of a contract worker or contract workers has resulted in financial loss. The coverage also includes a duty to defend and can be written with considerations for a specific industry.
General liability coverage for a staffing agency is different than typical general liability coverage in that it includes broadened coverage that extends to employees who are working on site and those who are on assignment.
Staffing agency insurance can include additional coverage based on individual needs, and some policies can be further customized to meet the needs of agencies that specialize in an industry.