The Importance of Professional Liability Insurance for Staffing Firms

Lawsuits are commonly filed against staffing companies. Whether it is a mistake by the staffing service itself that costs a client money or an error by a contracted worker, staffing companies need protection from these lawsuits. Here is what staffing companies need to know.

Protection for Staffing Companies

Businesses depend on a staffing company to fill their staffing needs with adequately trained personnel. Something as simple as a scheduling error or as serious as improper screening can cost a client money and result in a lawsuit. Professional staffing services insurance can protect companies against the legal costs associated with a claim.

Protection for Placed Workers

Liability coverage is as vital for contracted employees as it is for the staffing service employees themselves. A staffing service’s contracted employees may work in various fields where a wrong decision or simple oversight could be costly. This is especially true of professional placements, whether in medical, financial, legal or other professional fields. 

Having the right professional liability insurance can protect staffing companies against liability claims regardless of who makes the error or mistake that leads to a lawsuit. Even claims that prove to be false can be costly to a staffing service and should be covered by professional staffing services insurance.