Coverage to Protect You From Employers’ Negligent Actions

Coverage to Protect You From Employers’ Negligent Actions

employment practices liability

Staffing agencies are tasked with the responsibility of hiring employees on behalf of another employer. However, their responsibility doesn’t end when an employee is placed. Though the new hire may be under the supervision of the agency’s client, and though they may be subject to the terms, location and duration of employment set by the client, the new hire is technically an employee of the agency. As such, the agency can get into legal trouble for any negligent actions performed by the employer. For this reason, if you’re in the business of providing staffing services, invest in a sound employment practices liability policy today.

Once you make a hire on behalf of a company, you must trust that the employee-employer relationship is a good one. Unfortunately, trust isn’t enough. While oftentimes, claims against staffing agencies stem from employers dissatisfied with a hire or services rendered, many claims stem from employment discrimination, sexual harassment and wrongful termination. If one of your placement sues for any of those things, your client won’t be the only one held liable; you will be held liable, too.

Though there is not much you can do to prevent a lawsuit once a claim has been filed, you can protect yourself from financial loss. A comprehensive employment practices liability policy can protect your firm from the losses caused by the negligent actions of employers.