The dynamic demands and constant fluctuation of an employment agency can make finding the right type of employment agencies insurance coverage challenging. Most companies are required to carry Worker’s Compensation insurance and may have a general liability policy, but having only those types of policies may not be enough coverage in the event of a claim against your company. An employment agency faces unique coverage needs to protect itself from the liability of hiring people that go to work for a third party. It’s important to learn what type of coverage and how much coverage you need to adequately protect your company.
Employment agencies insurance may consist of a portfolio of a variety of different types of coverage. Core coverage may consist of worker’s compensation, general liability, and employment practices liability. Employment practices liability can provide coverage for both regular staff and temporary employees working for a third party client, against claims of employment discrimination or harassment. Employment discrimination lawsuits continue to rise each year. It is estimated that over half of those lawsuits are won by the employee. This type of claim can cost your company hundreds of thousands of dollars, making it critical to have coverage in the form of employment practices liability insurance.
In addition to core coverage, an employment agency may also want to consider auto liability, casualty, fidelity, or fiduciary insurance. Two other important coverage items to consider are errors and omission insurance for protection against an employee mistake that costs a client a financial loss, and cyber insurance that protects you in the case of personal data loss or other IT problems. Creating a comprehensive insurance plan to adequately protect your employment agency can limit your risk of liability.
If you are interested in finding out more about insurance coverage for your company, visit World Wide for more information.