Why Staffing Agencies Need Liability Insurance for Placed Workers
- 2 hours ago
- 2 min read
Running a staffing agency involves more than matching candidates with employers—it also comes with legal and financial risks. Placed workers can sometimes cause workplace accidents, make mistakes on the job, or trigger claims against your agency. Liability insurance ensures your staffing firm is protected from these unexpected risks, keeping your business secure.
Without coverage, even a single claim from a client or employee could lead to costly lawsuits, reputational damage, or business interruptions. For staffing agencies, liability insurance is not just a precaution—it’s a critical part of responsible business management.
How Liability Insurance Protects Staffing Agencies
Liability insurance offers protection for staffing firms in various scenarios:
Employee Errors or Omissions – If a placed worker makes a mistake, professional liability coverage can protect your agency from claims.
Bodily Injury or Property Damage – General liability insurance covers accidents caused by your placed workers on client sites.
Legal Defense Costs – Insurance can help cover attorney fees and court costs, reducing the financial burden of a lawsuit.
Essential Liability Coverages for Staffing Agencies
Staffing agencies should consider multiple types of insurance to protect both their business and their placed workers:
General Liability Insurance – Covers injuries or property damage caused by your placed employees.
Professional Liability Insurance – Protects against claims of negligence or errors in placement decisions.
Workers’ Compensation – Provides coverage if a placed worker is injured while on assignment.
Employment Practices Liability Insurance (EPLI) – Protects against claims related to workplace discrimination or harassment by employees.
These coverages together ensure a staffing agency is protected from most common risks associated with placing workers in client organizations.
Choosing the Right Provider for Staffing Liability Insurance
Partnering with an experienced insurance provider is crucial for staffing agencies. Wexford Insurance specializes in staffing and recruiting firms, offering customized solutions to safeguard your business. Our team can help identify coverage gaps and provide policies that protect your placed workers and your firm from liability risks.
Start protecting your staffing agency today. Request a staffing insurance quote from Wexford Insurance.
