Applicable to ALL Staffing Agencies
Every staffing agency should consider their need for professional liability insurance. It is no longer only for agencies staffing lawyers, nurses, accountants, or architects, but for all. And today most general liability policies issued to staffing agencies exclude professional liability.
Case of the Forklift Operator
Consider an example whereby a client requests a forklift operator. Your temporary agency fills the position, and the employee mishandles a pallet and injures someone. The staffing agency’s general liability should provide protection (reference Hidden Staffing Agency Liability). But in the course of investigation it is discovered the temporary employee was not properly trained or certified. Maybe they had indicated such on their application, but those details were not checked during hire. In other words, your agency had an error or omission of professional duty which ultimately lead to someone being injured.
Could such an event be excluded under general liability insurance since it deals with a breach of professional conduct? Absolutely. Every claim is different and stands on its own merits, but the goal of this example is to illustrate how a staffing agency not normally involved with traditional “professional” fields can still be exposed to professional liability risk.
What does it cost?
For a staffing agency with minimal professional liability exposure, costs can start around $2,500 per year. For an agency that staffs professionals such as nurses or accountants, cost varies widely based upon payroll and claim history.
What now?
- For more information, visit our staffing industry webpage or give us a call at (877) 606-1375.
- Browse all our Staffing Industry Posts.
Put our experience to work for you. We know the staffing industry and can offer tailored insurance solutions – no matter what your temps are doing.
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