If you’re in the business of hiring temporary employees for businesses in your area, you know better than most how risky the staffing business is. Temporary placement is particularly difficult, as you need to find someone who is looking for temp work but who is reliable, trustworthy and hardworking. That combination can be difficult, as individuals who are the latter three things are generally looking for full-time employment. That said, it is not uncommon for staffing agencies to make what they believe to be good hires, only to be slapped with an E&O suit months later. To protect your business from professional liability suits, invest in temporary staffing insurance.
Temporary staffing coverage is designed to protect agencies that specialize in temporary staffing from class action suits dealing with negligent hires, temporary employee misconduct, financial loss as a result of a poor placement or failure to provide specified services. Professional liability suits can be costly and time-consuming, and without the right coverage, they can result in financial devastation. The right coverage can cover costs associated with a lawsuit and any damages accrued by a frivolous claim.
Though you may do everything in your power to prevent liability lawsuits, they do happen. Protect your firm from financial devastation when a claim does arise, and pick up a temporary staffing insurance policy today.
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:
Lost wages resulting from being unable to work
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.
If your frustrations with your current insurer have reached their peak, it may be time for you to start shopping for temporary staffing insurance with a better company. Just because you have an established history with a particular insurer doesn’t mean that you are obligated to stay with them. They may not be giving you the best rates nor a sufficient amount of coverage in your policy. Instead of sticking around out of loyalty, protect your company’s best interest by finding an insurer that truly values it policy holders.
Although you are getting financial protection for your company from an insurer, you should never have to compromise on any of your experiences when you interact with them. Poor customer service, miscommunication, inaccurate information, lengthy claims processes and high claim rejection rates are all red flags you should keep an eye out for. If you run into any temporary staffing insurance companies that have them, steer clear and continue looking elsewhere. You may run into a few duds before you find one that makes the grade.
No matter how great an insurer is, reevaluate your policies and experiences with them every six months to a year. It’s a great way to ensure that you always get the caliber of services and insurance products you deserve.
You may place workers with clients for days, weeks or months, but focusing on temporary staffing means a quick turnover and the likelihood that you will be dealing with a large number of people. There may be many people coming through your doors intending to work for clients, and this entails significant responsibility on the part of your company. Make sure your agency is insured against damage or injury caused by workers placed with clients with temporary staffing insurance.
The risks involved with temporary staffing can be greater than with permanent staff because of the number of people you are likely to be working with. Thorough screening is required, but it may be hard to catch every sign of potential problems. In addition, unexpected mistakes and mishaps can occur. Look for temporary staffing insurance that covers liability for bodily harm, property damage and monetary loss. You may also want coverage against cyber-crime and other kinds of misdeeds.
Be sure to screen potential workers thoroughly before placing them with clients. Do complete background checks and call prior employers for references. After doing this research, there is always a chance, of course, that problems may arise as the result of mistakes in the workplace. Make sure you are covered with temporary staffing insurance.