Temporary staffing agencies have unique Workers’ Compensation Insurance needs. Any temporary staffing insurance package should include appropriate Workers’ Compensation coverage.
What Is Covered by Workers’ Compensation Insurance?
By law, Workers’ Compensation provides both medical coverage and income replacement for workers who are injured or become ill as a result of being on the job. In the case of injury or illness as a result of work, coverage includes:
- Medical expenses
- Lost wages resulting from being unable to work
- Permanent disability
- Death benefits
Do Clients’ Workers’ Compensation Plans Cover Temporary Employees Placed by a Staffing Agency?
In some cases, yes, clients could be liable for Workers’ Compensation under the law. In many cases, both employer clients and staffing agencies serve as joint-employers under the law. However, staffing agencies cannot rely on clients to provide coverage for workers. Because staffing agencies are the employers of these workers, staffing agencies must carry Workers’ Compensation coverage.
Is Workers’ Compensation Insurance Required for Seasonal and Temporary Employees?
Even if you only employ seasonal and temporary employees, you must carry Workers’ Compensation Insurance, per the law. This is just one of several temporary staffing insurance needs.
Workers’ Compensation coverage is absolutely necessary. Even temporary staffing agencies need it as part of their temporary staffing insurance package.