Two Important Types of Staffing Insurance

Two Important Types of Staffing Insurance

Two Important Types of Staffing Insurance

Staffing insurance is a must have for any employment agency. Since agencies send employees to work for various businesses, they need added protection. But how will you know what type of policy to look for? There are many different types of coverage available to employment agencies, and choosing the right one is very important for any company in this industry. Here are a few of the most common types of coverage.

Professional Liability

Professional liability insurance, or errors & omissions insurance, is one of the most popular types of coverage. It protects the staffing agency from any financial loss incurred by clients due to an employee’s actions. If an employee incorrectly performs a task, or causes the client to lose business, your agency will not be held responsible.

Direct Hire

In the event that a placed employee commits an illegal act, such as discrimination or fraud, a direct hire policy can prevent you from being held liable. You will not be responsible for defense costs, or any other expense stemming from the employees actions. This is especially important if your employee is placed in a role that involves extensive interaction with others.

In short, you should decide what type of staffing insurance coverage best fits your company’s needs. These are two of the most important types, but there are many others available. By purchasing liability and direct hire insurance, you will be protecting the interests of both your business and your clients.