Whether your agency employs temporary or permanent staffing, you have particular liabilities and insurance needs above and beyond those of most other businesses. We will customize your Employment Agency insurance to meet your business’ needs, including General Liability, Professional Liability, Business Auto, Property, Workers’ Compensation and more.
General Liability covers third-party claims where you or one of your employees caused them either bodily harm or property damage. This can be clients, vendors or anyone who visits your property. Something as simple as a delivery person getting hurt by by falling down your stairs could result in a costly lawsuit. Personal injury lawsuits mean lawyer’s fees, court expenses, and possibly damages being awarded to the plaintiff.
But what, for example, if your temporary worker in your client’s bakery spills hot liquids on another worker resulting in serious burns? General Liability issues such as these can arise for temporary staff due to different contractual arrangements and the element of which employer is is control.
The risk of lawsuits arising from professional errors is high for employment agencies. Your clients expect your agency to supply them with competent, experienced staff to handle the required work. Mistakes or negligence on the part of a worker supplied by your agency can result in expensive lawsuits. Professional Liability is also known as Errors & Omissions and is critical in the event one of your workers were to cause a client a financial loss. Even if the mistake is only perceived and proves to be unfounded, defending against such allegations can be extremely expensive and actually bankrupt you.
The risk of injury to the agency’s direct employees is limited to the typical office hazards, including tripping and falling, electrical shocks, and muscle strain. However, if off-site temporary workers are employees of the agency, the risk of injury increases depending on the type of work being done in their assignments. As with General Liability, coverage issues can arise when taking into account the element of which employer is in control and the wording in the agreement.
Some employment agencies offer shuttle services for employees to assignments or interviews, in which case there is a risk of automobile accidents occurring. Employees may also be required to use their own vehicles for business purposes, which elevates the risk. For example, if a worker uses his own truck while assigned to a construction site backs into and damages another vehicle or piece of equipment, you could be liable if his Personal Auto policy does not cover all the damages.
The potential for property loss in employment agencies is that of most office environments and includes fire, catastrophic weather, vandalism, and faulty plumbing or electricity. For example, high winds or a tornado could cause damage to a roof or even destroy an entire building. Property Insurance covers the cost of repair/replacement of the structure and its contents. It also covers any loss of income if the damage renders the business inoperable.
Crime typically occurs in employment agencies when dishonest employees steal from their employers. This can be in the form of embezzlement or stolen property, either from your agency or from the client for whom they are working. Third-party crime coverage is required for situations where your worker steals from your client.