Staffing agencies help companies satisfy human resource demands. They help look for employees with the talent and skills that match the goals, values, and insights of clients. Without these agencies, companies will scramble. Sometimes, they act as HR consultants too.
It’s important to get covered in case something goes wrong while working with such businesses. Staffing agency insurance is the insurance package for your staffing agency. Read this guide that will discuss the inclusions, cost, and the best companies that provide affordable and easy-to-claim insurance for recruiting companies.
You must meet certain business insurance for recruitment agency requirements. These include obtaining general liability insurance, commercial property insurance, and staffing workers compensation insurance. It is also advisable for you to consider additional insurance coverage such as tools and equipment insurance, a business owner's policy, and professional liability insurance.
|CoverWallet||NEXT (Best)||Thimble||Hiscox||The Hartford|
|Per occurrence limit||$1,000,000||$1,000,000||$1,000,000/$2,000,000||$300,000/$1,000,000||$1,000,000/$2,000,000|
|Products and completed operations aggregate limit||$2,000,000||$1,000,000||$1,000,000||$1,000,000||$1,000,000|
|Advertising injury coverage aggregate limit||$1,000,000||$1,000,000||$1,000,000||$1,000,000||$1,000,000|
|Tenant’s legal liability coverage limit||$100,000||$100,000||$5,000||$100,000||$1,000,000|
|Waiver of subrogation included?||Yes||No||Included||Can be included||No|
|Hired/non-owned auto liability coverage included?||Yes||No||Excluded||Can be included||Can be included|
|Equipment breakdown floater included?||No||Yes||Yes||Can be included||Can be included|
General liability insurance is a must-have for companies that help people find jobs. By getting insurance coverage made just for job placement services, these businesses can protect themselves from claims that could come from injuries to people, damage to property, and personal injuries. General liability insurance for job placement agencies is very important because it gives peace of mind in case of unexpected risks and liabilities.
Below are some of the circumstances under which your insurance job placement agencies may use this staffing liability insurance:
In the event, your staffing agencies become liable to third-party bodily injury and property damages
In the event, your staffing agency company gets sued for copyright infringement, reputational harm, and advertising injury
This business insurance for recruitment agency gives approximately $1 million-$2 million per occurrence and aggregate limit with $0-$500 deductible.
Below are some of the costs covered by general liability insurance for employment agencies:
Legal fees such as court costs
Medical expenses of the claimant
Reimbursement for the damaged property of the claimant
Product liability insurance–This add-on can protect your staffing agencies from any financial burden in the event the products sold cause your client's bodily injury
Tools and equipment–This optional temp agency insurance compensates expenses you incurred after repairing or replacing a laptop, camera, or any other business equipment that got lost or damaged due to fire, theft, vandalism, and other covered perils
|CoverWallet (Best)||NEXT||Thimble||Hiscox||The Hartford|
|Per occurrence limit||$1,000,000||$1,000,000||$1,000,000/$2,000,000||$1,000,000||$1,000,000|
|Name additional insureds?||Yes||Yes||Yes||Yes||Yes|
|Waiver of subrogation included?||Yes||No||Yes||Yes||No|
Abbreviated as PLI, this liability insurance policy for staffing is also known as professional indemnity insurance (PII). It is also often referred to as errors and omissions. Professional liability insurance for staffing firms is an insurance coverage that works to protect a staffing agency from bearing any full cost of defending against a negligence claim made by a client.
The policy, which you might need to have in order to satisfy recruitment agency insurance requirements, gives its policyholder approximately $1 million to $ 2 million in the event that the insured peril occurs.
Professional liability insurance for staffing firms will grant coverage for these perils that a staffing agency can face anytime throughout the course of its operations.
Negligence to meet the set standards
In the event of a breach of contract
Failure to meet the specified deadlines
Errors or oversights during service delivery
Failure to deliver services
Below are some of the situations that may prompt a staffing agency to use this liability employment agency insurance:
In the case your firm is sued for placement exposure–This is when an employer sues due to the staffing agency’s failure to provide it with suitable workers for the specified job description
In the event your staffing agencies firm is sued for work performed–This is where an employer sues a staffing agency for things like breach of contract, missed deadlines, or violation of good faith
Regulatory proceedings coverage–Under this add-on, your insurer covers all the legal expenses you are subjected to while responding to regulatory investigations and any other proceedings that are related to you or your employee's alleged professional misconduct
Crisis management coverage–In the event your staffing agency’s business reputation is jeopardized, then you can use this add-on to cover all your crisis management-related expenses
This is a type of insurance for staffing companies that protects against negligence claims from employees who have been inflicted by a job-related sickness or injury. It’s important to note that this liability insurance for staffing agency doesn’t cover the following employee claim: sexual harassment, wrongful or unlawful termination, and discrimination. Note that employer’s liability coverage can be an add-on to workers comp for staffing agencies.
Coverage limits for EPLI for staffing agencies may range from $1 million to $5 million or even higher, depending on the insurance provider and policy terms.
Below are some of the situations when you can use this insurance policy:
Loss of consortium lawsuits–These are claims from the employee’s family member seeking for workers comp benefits due to the loss of the relative or their source of income
Dual-capacity lawsuit–Employer’s liability insurance can grant protection in situations where an employee files a negligence claim for injuries or illnesses sustained happening under situations where the employee-employer relationship doesn’t apply
Get all the best quotes from leading providers in a click of a button!
|CoverWallet||NEXT (Best)||Thimble||The Hartford||Hiscox|
|Building coverage limit (minimum)||$50,000||$340,000||$25,000/$500,000||$35,000||$25,000|
|Contents coverage limit (minimum)||$50,000||$35,000||$25,000/$500,000||$35,000||$15,000|
|Money and securities||Excluded||$2,500||$1,000||Excluded||Included|
|Lock and keys||Excluded||$2,500||Excluded||Excluded||Included|
|Business interruption floater||Excluded||Included||Included||Excluded||Included|
|Equipment breakdown floater||Excluded||Included||Excluded||Excluded||Included|
|Inland marine insurance floater||Excluded||Excluded||$10,000||Excluded||Excluded|
|Employee dishonesty floater||Excluded||$5,000||$2,500||Excluded||Excluded|
This type of policy protects your physical workplace in case of property damage or loss. Under this cover, physical assets such as inventory, furniture, office equipment, storage sheds, landscaping features such as driveways, lawns, walkways, and fences, and any signages are protected in the event of damage or loss.
Commercial property insurance can help a staffing agency if its building, equipment, and other business property gets damaged or destroyed due to:
Commercial property insurance for staffing agencies provides coverage limits of $50,000 with a deductible of $1,000. The market value of your commercial building and the measures you have put in place to protect your commercial building from the insured perils are some of the factors insurers use to determine your coverage limit under this policy.
Business interruption insurance–If you lose income, or you are unable to pay rent and your employee's payroll following the occurrence of an insured risk, then you can use this add-on
Floods insurance–Under this add-on, you are protected from any financial burden you may be subjected to in the event your commercial buildings and the physical assets found in them get destroyed by flood
|CoverWallet||NEXT (Best)||Thimble||The Hartford||Hiscox|
|General liability aggregate limit||$2,000,000||$1,000,000/$2,000,000||$1,000,000/$2,000,000||$1,000,000/$2,000,000||$300,000/$2,000,000|
|Commercial property coverage limit||$50,000||$320,000||$25,000/$500,000||$35,000||$75,000|
|Optional policies can be added?||Yes||Yes||Yes||Yes||Yes|
|Name additional insureds for free?||Yes||Yes||Yes||Yes||Yes|
A business owner’s policy combines general liability and commercial property insurance. You can further customize this by adding other policies available from the insurance company. Go for a business owner’s policy because it’s cheaper than when you bought all of the included policies individually. Also, you enjoy easier policy management.
HNOA coverage–Hired/non-owned liability coverage takes care of the accidents caused by a vehicle you hired or borrowed for business purposes
Customer property coverage–This add-on to a BOP reimburses the financial losses of a third party whose property got lost or damaged while in your staffing agency’s care, custody, and control