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Three Ways Staffing Liability Coverage Protects You

Workers’ compensation often comes to mind when most people think of critical insurance coverages for staffing firms. While it’s fair to have worker’s compensation at the top of the list, according to www.wwspi.com, there’s another coverage that shouldn’t be too far behind. With the threat of lawsuits from both clients and employees lurking, staffing liability insurance is as valuable as any other coverage in your policy. Here are three ways this coverage can protect you against potential lawsuits.

Services Provided

Staffing firms can be sued for services provided to a client. For example, a client may sue you if they think that the information you provided was wrong and led them to experience losses.

Work Performed

On the other hand, a client may sue you because the employee you hired made mistakes that caused them to lose money. Whether or not they have the requisite skills, staffing agencies are responsible for their employees’ performance.

Placement

Placement issues can take multiple forms. A staffing firm can be sued for misrepresenting a role to an employee, placing an unqualified employee in a position or failing to place a candidate in a position altogether.

As evidenced here, it’s easy to see that a lack of staffing liability coverage can have a major impact on your finances and that it’s a necessary coverage to protect yourself against lawsuits. You should be sure to prioritize it when working with your agent to craft your policy.