Staffing Firms

Staffing firms play a critical role in today’s labor market, connecting employers with open positions and potential candidates seeking work. While this means they’re often focused on the needs of others, they must also focus inward and address the risks and exposures that can lead to financial consequences. Prioritizing an appropriate insurance portfolio is essential.

What Types of Business Insurance Do Staffing Agencies Need?

Many insurance companies don’t offer single policies equipped to assist staffing firms with all of their coverage needs. Instead, staffing agency insurance generally refers to a collection of several policies that, when combined, can provide financial protection from common risks and exposures.

Although the exact makeup of an adequate staffing agency insurance portfolio may vary, the following types of business insurance are typically recommended:

• General liability insurance may provide financial assistance if an agency is at fault for third-party losses, such as the bodily injuries of a guest or the property damage of a client.
• Commercial property insurance may help pay for damage sustained by a policyholder’s physical assets, including buildings, equipment, inventory and furniture.
• Professional liability insurance, also known as errors and omissions insurance, may financially protect businesses if they are accused of providing services that were incorrect, negligent, late or otherwise inadequate.
• Business interruption insurance may compensate organizations for financial losses and ongoing expenses if a covered incident disrupts normal operations, helping to pay for lost income, loans and payroll.
• Cyber liability insurance may insulate policyholders from the financial consequences of cyber incidents, including the cost of notifying affected parties, hiring credit and fraud monitoring services and paying for legal expenses.
• Workers’ compensation insurance may provide financial assistance for medical expenses, lost income and other losses arising from an employee’s on-the-job injury or illness.

Do Staffing Agencies Have to Offer Health Insurance?

Health insurance for staffing companies can vary depending on size, sector and other features. Staffing firms may employ large workforces and providing health insurance to help employees maintain their health and wellness may be advantageous. In many cases, laws and other regulations, such as the Affordable Care Act, may impact a company’s need to provide a group health plan. Human resources teams and other decision-makers should consult with a qualified professional to assess their needs and potential solutions.

Get the Right Coverage

At Clearwater Partners, we have over 20 years of experience helping businesses assess and address their insurance needs. Our dedicated staff will work with you to analyze your circumstances, identify ideal coverage options and procure optimal policies to secure your finances and future. Contact us today to get started.