Choosing the Right Liability Insurance

Staffing companies can face unique challenges when it comes to liability concerns. This is particularly true for those whose niche is outside the professional space. While the focus is often on workers’ compensation coverage, costs associated with employment practices liability claims can be substantial. Coverage should be broad and comprehensive to maximize the benefits. It may be necessary to modify standard liability policies to ensure elimination of coverage gaps and that the exclusions are appropriate for the firm.

Misclassification Concerns

Staffing organizations can be misclassified as employment agencies. As these firms make permanent, not temporary placements, liability inclusions are different.

  • Property damage, such as damage to heavy machinery when being operated by an employee may be inadvertently excluded from coverage.
  • Coverage for advertising and personal injury may not be addressed.
  • Exclusion of employee liability coverage for claims that occur when an employee is driving a client’s car.

Employment Practices Liability Insurance

Staffing organizations should confirm that their policy is designed to protect them against claims brought by applicants or employee.

  • Wrongful Business Environment products may protect against the staffing organization’s clients as well as non-employees.
  • Policy options may include Duty to Defend and Coverage for Workplace Torts.

Modifications to standard insurance can address the broadened definition of a claim and what indemnification the organization provides in a joint employer lawsuit.