Staffing companies occupy a unique niche that requires smart insurance solutions. As the primary employer of the work force you send out to your clients, you have liability with regard to employee protection, but do you have professional liability in the same way a direct employer does? The short answer is not so short, because you do have professional liability to cover, but it’s shared with the client in some areas and possibly liability with regard to the client in others, depending on the exact situation under discussion. Since professional liability insurance for staffing firms can be so hard to generalize, it’s a good idea to check out what tailored coverage would look like for your business.
Professional Liability Coverage vs. General Liability Insurance
Your general liability policy probably covers professional liability to an extent, but the policy maximum is a combined maximum across all the areas of liability it covers. As a result, an excessive claim in one area could max out the whole plan. Some coverage gets around this by having caps in each area as well as an overall maximum, but that doesn’t solve the problem if your issue is exposure beyond the value of the insurance. Since buying more general liability coverage for one area of protection is very cost-inefficient, professional liability protection offers additional coverage in this area. It doesn’t replace general liability protection, it works with it to make sure you’re fully insured.