Understanding Staffing Agency Insurance

1. Understanding Staffing Agency Insurance

2. Browse through LinkedIn and see that there seem to be many vacancies proffered to any qualified candidate at the moment. After seeing a ray of sunshine thanks to medical advancements against COVID-19, the US job market is back to mean business again More and more Americans now rethink their careers which signals the end of an era dubbed by recruiters as "The Great Resignation." The Great Reshuffle has begun

3. With the multiple vacancies and a vast pool of talents looking to get hired, all eyes are on one industry. As a result, firms offering staffing and recruitment services got a lot of work to do.

4. What are staffing agencies?

5. In addition, the process often involves a lot of back and forth communication between the prospect and the company—so imagine how wasteful it would be if the candidate isn’t a good fit. With a staffing agency helping you out, these matters are well taken care of. All you have to do is select from the cream of the crop and expect your new hire to come to work ASAP.

6. What are the benefits of hiring through a staffing agency? Aside from fast hiring, what else can companies get if they course through the hiring process with a staffing agency? They get flexibility and reduce other risks thanks to the staffing insurance programs the agency will most likely have in place. Some companies are experimenting with the possibility of catering to a variety of employment types. This move doesn’t come as a surprise since a leaner operation will ensure profitability for the company, what with the continued onslaught of the pandemic.

7. Managing a fluid workforce is something a staffing agency can do best because the client company can arrange for the firm to handle the administrative and payrolling needs of the contingent workers. Since the firm handles the temporary associates, they also assume liability, especially if the employee left or was fired. The staffing agency insurance coverage includes the worker's exit's financial and operational risks. This coverage means the client company is mostly, if not absolutely risk-free. Why invest in staffing agency insurance? Given the nature of their service, staffing agencies are more vulnerable, much more at risk than the client companies they aid. And that is why insurance for staffing firms is a need.

8. Staffing agency insurance, if covering all the bases that the firm needs, will address general, commercial, and professional liabilities and even workers’ compensations. Getting one will be beneficial because it protects the agency's assets when worse comes to worst. What type of insurance is needed for a staffing agency? Staffing agency insurance varies because you’ll want to get coverage that fits your firm’s needs. But, there are common types that your provider will most likely recommend to you: General/Professional Liability InsuranceFor unfortunate third-party claims of property damage, physical injury, or defamation, your general liability insurance will cover any medical or repair bills plus legal fees if they sue your firm.

9. Meanwhile, your professional liability insurance will cover the necessary legal fees for lawsuits over your professional services as a staffing agency. This includes any errors, omissions, or misleading statements. Commercial Property Insurance Commercial property insurance will cover the necessary repairs if your staffing agency gets damaged due to fire, theft, vandalism, and other life-threatening events. Commercial Crime Insurance Commercial crime insurance will come in handy if a client loses finances and property due to illegal activities like theft, forgery, and computer theft committed by the placed employee or outside actor. Click to add text

10. Workers’ Compensation Insurance No matter the industry, most states require a company to get Workers’ Compensation Insurance for their employees. This insurance covers medical bills, rehabilitation costs, and lost wages if a placed employee gets injured or ill within the workplace or while on duty. This type is also a good coverage, and frankly more needed, for staffing agency insurance. Why should this be part of the staffing agency insurance coverage? Well, it goes both ways.

11. On the one hand, employers who availed of it will face less risk of workplace lawsuits, penalties, or fines. On the other hand, employees who will benefit from the insurance will get the needed support in the face of work-related injuries or hospitalizations. To Wrap It Up No business comes without risk, which is why it’s always the best course of action to protect your assets. For more vulnerable companies like recruitment, looking to invest in insurance for staffing firms will prove beneficial in the long run.