Staffing Agency Insurance: Cost and Quotes from $40/mo

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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. 

LLCs and corporations hire the help of staffing agencies. In particular, businesses that seek human resource aid are construction companies, IT businesses, and security firms.

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. 

Staffing Agency Insurance Requirements

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.


General Liability Insurance for Staffing Agencies

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
Aggregate limit  $2,000,000 $1,000,000/$2,000,000 $1,000,000/$2,000,000 $300,000/$2,000,000 $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.


What Situations May Prompt You to Use General Liability Insurance for Staffing Agencies?

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

Coverage Limits for General Liability Insurance for Staffing Agencies

This business insurance for recruitment agency gives approximately $1 million-$2 million per occurrence and aggregate limit with $0-$500 deductible.


What Cost Does the General Liability Insurance for Staffing Agencies Cover?

Below are some of the costs covered by general liability insurance for employment agencies:

  •  Legal fees such as court costs

  •  Settlements

  • Medical expenses of the claimant

  • Reimbursement for the damaged property of the claimant

Add-Ons for General Liability Insurance for Staffing Agencies

  • 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  

Professional Liability Insurance for Staffing Agencies

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
Aggregate limit  $2,000,000 $2,000,000 $1,000,000/$2,000,000 $1,000,000/$2,000,000 $2,000,000
Name additional insureds? Yes Yes Yes Yes Yes
Waiver of subrogation included? Yes No Yes Yes No
Deductible  $500 $500 $500 $500 $500


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. 


Coverage Limits for Professional Liability Insurance for Staffing Agencies

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.


What Cost Does the Professional Liability Insurance for Staffing Agencies Cover?

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

Incidents in Which You Can Use the Professional Liability Insurance for Staffing Agencies

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

Add-Ons for Professional Liability Insurance for Staffing Agencies

  • 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

Employer’s Liability Insurance for Staffing Agencies

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 Employers Liability Insurance 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. 


Situations When You Can Use This Staffing Agency Insurance

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

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Commercial Property Insurance for Staffing Agencies

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
Outdoor signs Excluded $2,500 Excluded Excluded Included
Accounts receivable  Excluded Excluded $5,000/$10,000 Excluded Included
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.


Situations When You Can Use This Staffing Agencies Insurance

Commercial property insurance can help a staffing agency if its building, equipment, and other business property gets damaged or destroyed due to:

  • Fire

  • Theft

  • Vandalism

  • Lightning

  • Vehicle

  • Aircraft

  • Sinkhole collapse

  • Sprinkler leakage

  • Rains

  • Snow 

Coverage Limits for Commercial Property Insurance for Staffing Agencies

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.


Add-Ons for Commercial Property Insurance for Staffing Agencies

  • 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

Business Owner’s Policy for Staffing Agencies

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
BOP discount? 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. 


Add-Ons to Business Owner’s Policy for Staffing Agencies

  • 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


A person giving a presentation to a group of people in a classroom.


Tools and Equipment Insurance for Staffing Agencies

NEXT  Thimble Hiscox The Hartford
Aggregate limit $3,000/$10,000 $2,500/$5,000 $15,000/$25,000 $5,000-$10,000
Covers hired and borrowed equipment? $3,000/$10,000 $2,500/$5,000 No Yes
Miscellaneous equipment also covered? $5,000/$10,000 No Yes Yes
Offered as an endorsement to general liability insurance? Yes Yes Yes Yes
Deductible $500 $500 $0 $0


Tools and equipment insurance provides protection for extremely expensive tools and equipment that are challenging to replace once lost or damaged. This staffing firm insurance ensures that the policyholder gets compensated for their insured tools and equipment in the event that it is stolen, damaged, or gets lost.

It’s important to note that this policy only holds water if the tools and equipment being covered are less than 5 years old and are moveable. It doesn’t cover normal and general wear and tear of the equipment, such as worn-out tire treads and ball bearings of the tools and equipment.

Under What Situations Can You Use the Tools and Equipment Insurance for Staffing Agencies?

Below is a list of some of the circumstances that may prompt you to use this insurance for staffing firms:

  • In the event, your staffing agencies tools and equipment are stolen, lost, or get damaged due to fire, theft, vandalism, and other covered perils 

  • If your staffing agencies’ employees working gear gets damaged due to upset or operator error 

Coverage Limits for Tools and Equipment Insurance for Staffing Agencies

Tools and equipment insurance gives $100,000 in coverage with a per-item limit of $2,500-$5,000. It also comes with a deductible of $500. 


What Cost Does the Tools and Equipment Insurance for Staffing Agencies Cover?

Below are some of the costs covered by this insurance policy:

  • Repair of the damaged business equipment that the staffing agency owns

  • Take care of the cost of replacing damaged or stolen business equipment so that the staffing agency doesn’t incur losses

Add-Ons for Tools and Equipment Insurance for Staffing Agencies

  • Inland marine insurance–This add-on protects you from incurring the costs of repairing or replacing your staffing tools and equipment that may be lost, stolen or damaged while on transit

  • Flood insurance–You can use this add-on in the event your tools and equipment get damaged or destroyed by floods

Commercial Auto Insurance for Staffing Agencies

This is a type of policy that protects your organization’s employees from any auto-related incidents and accidents. Please note that this policy covers vehicles owned by a staffing agency and not those rented or hired.

However, it’s possible to include hired and non-owned automobiles in this insurance policy. It’s important to note that this policy doesn’t cover personal automobiles that employees use to run errands for your business. 


What Cost Does the Commercial Auto Insurance for Staffing Agencies Cover?

Below are some of the costs covered by commercial auto insurance for recruiting firms:

  • Bodily injuries and property damage

  • Medical expenses for both the driver and the passengers

  • Vehicle damage due to collisions, fire, theft, vandalism, lightning, and other covered perils

Add-Ons for Commercial Auto Insurance for Staffing Agencies

  • Roadside coverage–This add-on to the commercial auto policy of  staffing agency insurance programs provides you financial aid in the event your commercial vehicle needs emergency services after it breakdowns while you are using it on the road

  • Engine protection coverage–Under this add-on, an insurer will pay for all the costs you incur to repair or replace some parts of your commercial vehicle’s engine

Workers Compensation Insurance for Staffing Agencies

Workers comp insurance for staffing protects workers who are exposed to occupational health hazards. That is injuries, fatalities, and sicknesses. Workers comp for staffing companies also caters for any medical expenses and a percentage of lost wages to workers.

It’s important to note that in the event of the death of an employee due to work-related causes staffing agency employee’s spouse, children or any other dependent may benefit from the workers compensation. Workers compensation for staffing companies also protects from any financial losses that may be incurred due to workers’ compensation claims.

Workers compensation insurance for staffing agencies is mandated by law. The failure to get this coverage might result in severe fines and penalties from the workers comp board of the state where you’re conducting business operations. 


What Cost Does the Workers Comp Insurance for Staffing Companies Cover?

Below are some of the costs covered by workers compensation insurance for staffing companies:

  • Approved medical procedures

  • Costs incurred when traveling for medical appointments

  • Drug prescriptions

  • Hospital stays

  •  Medical appointments or visits

  •  Medical equipment

  • Retraining costs 

Situations When You Can Use Staffing Agency Workers Comp Insurance

Here are some situations where you can use staffing agency workers comp insurance:

  • An employee gets involved in an accident while driving a vehicle to meet a client for your business

  • An employee slips and falls during a seminar with team members

  • An employee gets robbed and beaten while transporting important equipment for your business

What Can Cause a Workers Comp Insurance for Staffing Agencies to Be Nullified?

Below are some of the situations that may nullify workers compensation for staffing agencies:

  • A staffing agency workers compensation may not be valid if one works for the staffing agency as a volunteer or an intern

  • If an employee’s injuries are a result of drug abuse including medicinal or prescription cannabis

  • If employees sustain injuries as a result of a fight that he/she started or caused to happen 

Add-Ons for Workers Comp Insurance for Staffing Agencies

  • Employer’s liability insurance–This add-on to workers comp for staffing agencies can cover negligence claims filed by employees who sustained a work-related injury or disease

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Staffing Insurance Cost

Cost per Month Cost per Year Deductible
General liability insurance $44 $528 $0-$500
Professional liability insurance $49 $588 $500-$1,000
Employer’s liability insurance $51 $612 $500-$1,000
Commercial property insurance $83 $996 $1,000-$2,000
Business owner’s policy $104 $1,248 $1,500
Tools and equipment insurance $46 $552 $500-$1,000
Commercial auto insurance $75 $900 $500-$1,000
Workers compensation insurance $122 $1,464 $2,000-$5,000


The average staffing insurance cost is $44 per month or $528 per year for a $1 million general liability insurance. Factors that affect the cost of premiums are claims history, business history, policy limits, deductibles, revenues, number of employees, and location. Here’s a table showing the cost of a $1 million general liability policy from the best staffing agency insurance companies:

Cost per Month Cost per Year Best for
NEXT $17 $204 Best overall; Fastest general liability insurance for staffing agencies
CoverWallet $21 $252 Compare multiple quotes of business insurance for recruitment agency online
The Hartford $25 $300 Workers compensation insurance for staffing agencies
Tivly $27 $324 Comparing staffing agency insurance quotes over the phone
Thimble $33 $396 Short-term general liability insurance for temporary staffing agencies
Hiscox $30 $360 Staffing agency insurance with automatic policy renewal
USAA $35 $420 Staffing agencies owned by military members
PHLY $37 $444 Staffing agencies that are looking for affordable commercial auto insurance policies

Compare Cheap Staffing Agency Insurance Quotes Online

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Best Staffing Agency Insurance Companies

Please have a look at a list of some of the best insurance companies before you begin your staffing agency insurance application process. Read some of the reviews below to know their pros, cons, and average rate for a $1 million general liability insurance:


NEXT Staffing Agency Insurance

Pros

  • Best overall

  • Issues an online proof of insurance instantly

  • Fastest general liability insurance for staffing agencies

  • Great customer service and reputation

  • Excellent rates

  • Outstanding value for money

  • Get a 10% discount if you buy two or more policies

Cons

  • Couldn’t find any

Founded back in 2016, NEXT offers commercial insurance for staffing agencies 100% online. It serves as a perfect fit for small-scale business owners who require fast insurance coverage, that is they can acquire a single policy that provides different types of coverage. It’s also an excellent choice for individuals who want to manage their insurance policies digitally or online. This first-rate insurance company sells its policies either individually or in packages at a 10% discount.

Best for: Best overall; Fastest general liability insurance for staffing agencies

Average cost: $17 per month

Our rating: 10/10


CoverWallet Staffing Agency Insurance

Pros

  • Compare quotes online 

  • It offers more than 30 different types of insurance covers

  • It’s easy to register and use

Cons

  • Not an insurance company but an insurance broker

CoverWallet is an online technology company that sells business insurance for staffing agencies through its partnered agencies. It helps both veteran and newbies business owners to compare the best insurance policies available in the market.

Best for: Compare multiple quotes of business insurance for recruitment agency online

Average cost: $21 per month

Our rating: 10/10


The Hartford Staffing Agency Insurance

Pros

  • It offers its clients with added free benefits depending on their insurance policies

  • It offers premium customer services with its customer services running 24/7 

  • It offers discounts to its policyholders

  • It has a large array of insurance policies

Cons

  • It’s not a BBB accredited business

Having been founded in 1810, The Hartford offers commercial insurance for staffing agencies policies to staffing agencies. This financially stable insurance company mainly deals with auto, homeowners and recruitment agency business insurance policies.

Its insurance policies are offered to all 50 states of the USA. It also offers the following discounts to its policyholders: Driver training discount, good student discount, defensive driver discount, claim free discounts, retiree credits, paid-in-full discount, and AARP membership discount. Nonetheless, The Hartford works well if you’re looking for workers comp for staffing companies. The company has garnered many awards for the way it has underwritten the policy. 

Best for: Workers compensation insurance for staffing agencies

Average cost: $25 per month

Our rating: 10/10


Tivly Staffing Agency Insurance

Pros

  • Compare quotes over the phone

  • Takes you to a carrier that best fits your needs 

  • It provides a wide array of recruitment agency business insurance policies

Cons

  • It lacks tools for handling multiple policies from its different partnered insurance providers

Tivly is a private insurance company that was founded in 2009. Its headquarters are located in Saint Petersburg, Florida. This financially dependable digital insurance company offers a number of policies through its 200 partnered insurance providers. Call now to compare quotes over the phone. 

Best for: Comparing staffing agency insurance quotes over the phone 

Average cost: $27 per month

Our rating: 9/10


Hiscox Staffing Agency Insurance

Pros

  • Worldwide coverage

  • 14-day money-back guarantee

  • Numerous add-ons to base policies

Cons

  • It’s not available in Alaska

Hiscox is an international insurance company that typically sells basic insurance policies to both small-scale, large-scale business owners. This industry leading insurance company sells its insurance policies online and from its independent insurance agents.

Best for: Staffing agency insurance with automatic policy renewal 

Average cost: $30 per month

Our rating: 8/10

Thimble Staffing Agency Insurance

Pros

  • It offers online policy purchase services

  • It has a mobile app that can be downloaded from Google store

  • It’s possible to pause your monthly coverage payments

  • Its fast to use-you can apply for an insurance coverage in less than a minute

Cons

  • It doesn’t sell commercial auto insurance policies

  • You can only contact customer support online

Thimble sells different insurance policies to individuals who need fast to acquire and reliable business insurance for recruiting agencies. These coverages can be sold by the month, day or in hours, making it a suitable choice for individuals who need temporary staffing insurance.

Best for: Short-term general liability insurance for temporary staffing agencies

Average cost: $33 per month

Our rating: 9/10


USAA Staffing Agency Insurance

Pros

  •  Above average customer care service

  •  It provides coverages to Washington, DC and all the states of USA

  • Apart from dealing with insurance policies it also provides banking and investing services/products to its customers

Cons

  • Its policies are only available to serving militants, honorably discharged veterans, and close family members

The United Services Automobile Association (USAA) is a reputable insurance, investing, and banking company that solely deals with the provision of insurance policies to actively serving military members,  honorably discharged veterans, and their close families. USAA staffing agency coverages include general liability, professional liability, commercial property, and commercial auto insurance. 

Best for: Staffing agencies owned by military members

Average cost: $35 per month

Our ratings: 9/10


Philadelphia Insurance (PHLY) Staffing Agency Insurance

Pros

  •  It offers a wide range of coverage that span in over 120 niches in the business market

  • Available in all the 50 states

  • It provides 24/7 claims reporting services for policyholders who incur unprecedented and devastating losses

Cons

  •   Its claims reporting instructions may be a bit confusing to a new policyholder

The Philadelphia insurance company previously known as Maguire Agency was a family-owned insurance company until 1993 when it became a public entity. This 50-year-old reliable insurance company is BBB accredited and rated as an A++ insurance provider by AM Best. Commercial auto insurance, professional liability, business owners’ polity are some of the coverages that insured Philadelphia insurance staffing agencies enjoy.

Best for: Staffing agencies that are looking for affordable commercial auto insurance policies

Average cost: $37 per month

Our ratings: 8/10

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