How Can Direct Hire Insurance Protect Staffing Agencies?

Temporary staffing agencies require numerous specialized forms of staffing insurance to guard against unique industry risks. For agencies that primarily offer direct hire and permanent placement services, direct hire insurance is one of these essential policies. This insurance can protect an agency against a number of potentially harmful missteps during the hiring or placement process.

Guarding Against Direct Claims

Staffing employees and clients may make claims against staffing agencies for various reasons. Employees and job candidates who were not hired may bring claims involving discrimination and employment practices. Clients may make claims for professional oversights or errors. Even if these claims are unfounded, mounting a defense against them can be costly. Direct hire insurance can help address both defense and settlement costs.

Defending Against Third Party Actions

Direct hire staffing insurance can also provide coverage for any alleged wrongful acts that non-employees of a staffing agency commit. These covered individuals include contractors, interns and even volunteers. This extended coverage can be critical, since staffing agencies typically cannot oversee the actions and practices of every non-employee who assists the agency in hiring or placement processes.

Ensuring Adequate Protection

Direct hire insurance can be invaluable to staffing agencies. However, this insurance typically does not offer protection against the full range of risks that these agencies encounter. To ensure that other important forms of coverage are not overlooked, most staffing agencies can benefit from seeking the advice of an insurance agent, who can identify additional areas of risk that an agency may face.