Why Professional Liability Coverage is Essential for Staffing Firms

A staffing agency faces some unique challenges when it comes to professional liability. If a staffing agency unwittingly hires a criminal, it could be accused of negligent hiring. If it hires an employee who looks great on paper but ends up losing money for the company they’re placed with, the agency may have to pay. If the agency makes a mistake when rendering their services to a client, it may be slapped with an E&O lawsuit. These are all exposures that typical HR departments don’t have to deal with, which is why it is so difficult for staffing firms to get the staffing agency insurance they need to protect themselves.

However, there are insurance companies out there that specialize strictly in the job placement industry. The best agencies realize that there are three types of exposures the industry faces: placement, work performed and services provided. If you own a headhunting firm, work with one of these knowledgeable agencies to build the comprehensive policy you need to protect yourself.

The best coverage should protect you from claims that range from failing to properly screen or test a candidate to placing the wrong candidate, and from misrepresenting a company to a candidate to costly mistakes made by the employee. Work with an experienced insurance agent today to assess your risks and get the staffing agency insurance coverage you need to safeguard your business.