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.
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 |
| 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.
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
Settlements
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 |
| 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.
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 |
| 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.
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
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 |
| 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.
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
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| 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.
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
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.
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
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.
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
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 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.
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
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
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
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
| 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 |
Get all the best quotes from leading providers in a click of a button!
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:
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
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
Compare quotes online
It offers more than 30 different types of insurance covers
It’s easy to register and use
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
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
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
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
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
Worldwide coverage
14-day money-back guarantee
Numerous add-ons to base policies
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
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
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
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
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
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
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
1 / 5
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
1 / 5
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
1 / 5
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
5 / 5
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
5 / 5
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
Not all those who wander are lost.
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