Staffing agencies have many considerations when purchasing insurance because they need to cover themselves as well as the contractors they hire. Professional liability, abusive acts liability and employment practices liability are three coverages that exemplify this need. Here’s how each of them plays a critical role in your policy.
Professional liability protects you and the contractors you hire against errors that lead to your client experiencing a loss. These can include:
Lack of Placement: you failed to properly staff the position for which you were retained.
Work Performed: the contractor makes mistakes on the job which leads to the client experiencing losses.
Other Services: if you provide other services such as consulting to your clients, then it’s possible for you to make mistakes that can cost your client money.
Abusive Acts Liability
Abusive Acts Liability protects you in case a contractor commits acts that result in bodily injury or property damage to a 3rd party while out on assignment. Abuse, for the purposes of this coverage, can range from physical injury to death.
Employment Practices Liability
After you’ve presented a candidate to your client, it’s possible for them to experience employment practices which may be against the law. These can include discrimination during their interview with the client, sexual harassment or wrongful termination. Your policy would cover you in case you’re involved in a lawsuit related to such a case.
Many other coverages are available to protect your staffing firm. Work with an experienced insurance provider for assistance with building the right policy for you.