One question to ask insurance companies you are considering for your temporary staffing insurance company is this: “What happens after I file a claim?” In company responses, look for a straightforward step-by-process and ease of contact.
Acknowledgement of Claim
In the first 24 to 48 hours after filing the claim, you should expect to receive written acknowledgement of the claim you filed. This acknowledgement should include the claim number as well as the name and contact information of the insurance claims professional handling the claim.
Contact from Claims Claims professional
Within one business day of the claim being received, the claims professional should contact your staffing agency to talk about the claim and where the process could go. This contact is normally via telephone.
If a lawsuit has been filed against your agency, the claims professional reviews your coverage and assigns you defense attorneys. They are chosen from a list of qualified area attorneys.
Dealing with a temporary staffing insurance claim can be an overwhelming and uncomfortable process. It is important that your insurance company is responsive to your questions. To that end, ways to contact your claims professional should be clearly listed. For example, you should know your claims professional’s name, mailing address, phone numbers, fax numbers, website URL and email address.
According to New Jersey law, all employers who are not covered by federal programs and who are not approved for self-insurance must have workers’ compensation insurance. By having New Jersey workmans comp insurance, business owners can be covered if their employees get injured because of the work these employees performed for the business.
This insurance often also needs to cover lost wages. According to New Jersey law, employees who have been disabled for more than a week may get seventy percent of their wages when on disability. The workers compensation coverage may even pay something to employees’ family members if employees die because of job-related issues. These death benefits often include funeral expenses and seventy percent of the workers’ lost wages. In exchange, the employees and their families cannot sue their employer for problems incurred while working.
New Jersey workmans comp, though, may be expensive for small business owners. New Jersey has an agency in the Banking and Insurance department called the Compensation Rating and Inspection Bureau that determines how much premiums your client may need to pay. As an insurance agent, you want to provide these small business owners, who do so much for our country and its citizens, with coverage that will not bankrupt them but will still allow you to earn a living. Insurance agents, like you, help business owners around New Jersey follow the law, help their employees, and help themselves.
A high-quality temporary staffing agency should be able to provide qualified candidates for clients. While staffing agency insurance can help protect an agency should something go wrong, there are certain things that can be done to reduce liability while simultaneously giving clients the employees that can get the job done well.
Customized Applications – It is common for staffing agencies to provide one generic application for all job opportunities, but it may be better to tailor applications for specific clients. This gives clients the ability to narrow down their expectations and reduce the chance of an issue with a temporary employee.
Look Into Employment Gaps – When collection information about a potential temporary hire, it is important to look into any gaps in employment. Staffing agency insurance can provide protection against theft or other criminal acts that an employee may commit, but those issues may be avoided if employment gaps can be specified.
Pay Attention to Background Information – Background checks are common requirements for job applications, and staffing agencies should take them seriously as well. Finding out about a criminal history or other issues that could pose a problem for clients may be able to prevent future claims against staffing agency insurance.
By reducing your liability risks, you may be better able to run your staffing agency without the fear of insurance claims looming.
The staffing industry is an exciting field where people who want jobs can become connected with employers who have work available. Despite the field’s incredible growth in recent years, there are some unique risks that staffing agencies face due to the nature of their work. Having the rightstaffing agency insurance can help to mitigate those risks, so agencies can stay focused simply on connecting potential employees and potential employers.
Double Liability From Clients and Temporary Workers
One unique aspect of the staffing industry is that there is potential liability from both the person you’re sending out for the work as well as from the client. This level of double liability is common within the staffing industry, but far less so in other areas of employment.
For instance, many staffing agencies specialize in providing temporary workers to local businesses. Even though the staffing agency has no control over the client’s environment and no direct control over how the client engages with that temporary worker, the staffing agency could potentially be liable in the event that the temporary worker or the client file a lawsuit. Even without knowledge or participation in any upsetting incidents, staffing agencies can still face this double liability. This is why it’s highly important for staffing agencies to find the right insurance in order to safeguard their businesses.
References and Research Help You Find Your Firm
There are many reputable firms that specialize in staffing agency insurance. Ask your colleagues if they have recommendations or research firms online. Finding the right insurance may take a little time, but it will be worth it for you and your business in the long run.
If you are going to open up a staffing agency, there are a lot of legalities that you will need to be aware of in order to run a lawful business. Staffing companies have to live up to the requirements that any other companies have to live up to, in addition to any other requirements that the city or state may implement for those types of businesses. Staffing agency insurance, licensing, and tax responsibilities are just a few of the requirements that you will need to complete.
Depending on the area where your staffing agency is located, there will be a minimal amount of insurance required. The two most common types of staffing agency insurance that you will be required to have are general liability and workman’s compensation. Speaking to an insurance agent will help you to determine whether there is other insurance coverage that you need, and what it is.
Every company in the nation has to be licensed in order to run a commercial business. Check with your local municipality to find out what the requirements are to obtain your license before opening day.
Every staffing agency that is up and running is required to pay both state and federal taxes on every dollar that they earn. In addition, unemployment tax, Social Security, Medicare, and others may also be included in the taxes that a staffing company has to pay.