Employment and staffing agencies are intermediaries between prospective employees and interested employers. Like all businesses, they require liability coverage in the form of staffing insurance, particularly for three specific areas of potential risk. These areas involve any and all work contract workers do for clients, job placement for contract workers and overall services rendered by the staffing agency. All staffing agencies should better understand the risks involved in these categories. That way, they can be better prepared to handle any potential incidents with the help of their insurance policies.
Once a contract worker is hired by a client through the staffing agency, the contract worker’s performance is expected to meet the client’s expectations. If the worker’s performance falls short or causes financial damage to the client’s company, then the agency will be liable for those damages. Another area of risk accounts for any complaints the workers may have about their job placements or lack of. Finally, services offered by the staffing agency, such as IT or general advising, are vulnerable to risk in the case of unsatisfactory performance.
All three of these areas are what make up of the bulk of an employment’s agency business. And like all businesses, agencies would benefit from investing in a staffing insurance policy to help prevent damages.