Will General Liability Cover Your Temporary Staffing Firm?

Your temporary staffing agency requires insurance coverage that reduces the unique risks of your industry. Standard policies typically do not cover all the exposures of a staffing company. You have liability related to the actions of your employees, even though they work off-site at other business locations. You need insurance for staffing firms that protects you from gaps in coverage and helps prevent loss.

What You Should Know About General Liability Policies

A general liability plan covers property damage and bodily injury claims that stem from your daily operations. Your business classification affects the amount of coverage your policy provides. Misclassification can leave you with costly holes in your insurance protections. If you classify your company as an employment agency, you will not get sufficient coverage because employment companies provide permanent employees to businesses, which means they have fewer liability risks.

Common Types of Insurance for Staffing Firms

Even if you classify your company correctly, a general liability plan will not cover all of your exposures. You may need to obtain additional policies or add endorsements to have more comprehensive coverage, such as:

  • Workers’ Compensation insurance covers expenses associated with lost wages and medical bills following a workplace injury.
  • Professional liability insurance pays for legal fees related to negligence claims.
  • Commercial property insurance mitigates the cost of repair or replacement of furniture, equipment, real estate and other company-owned property.

Your company works with both employees and other employers, which increases your liability risks. Ensure you have adequate insurance coverage to safeguard against possible issues.