The majority of claims in the temporary staffing industry involve workers’ compensation issues. If these claims are smoothly processed, some industry managers might mistakenly believe their companies are well insured when risky coverage gaps may exist. With such risks in mind, effective temporary staffing insurance programs must extend well beyond workers’ compensation.
General and Professional Liability Risk
Some common staffing liability insurance omissions include:
- Lack of coverage for temporary employees operating client-owned vehicles
- Missing coverage for advertising injury
- Vague or inadequate employment practices liability coverage for temporary staffers
The solutions include enlisting the help of an expert insurer and applying due diligence to contracts.
Sweating the details of a client’s contract is the first rule in temporary staffing risk management. Nevertheless, the wild card in this approach is that legislation, government regulations and court rulings always supersede contract language. To cope with this shifting regulatory landscape, an insurer focused on the staffing industry is highly desirable. An underwriter with a full-time team eyeing proposed regulations can serve as the radar for staffing managers navigating their challenging industry.
Seeing the total insurance picture is crucial for temporary staffing managers. An insurance agent allied with an insurer dedicated to the staffing industry can make a compelling case to new and existing clients.