Temporary staffing agencies face unique professional risks, especially regarding employee placement.
Errors and Omissions (E&O) Insurance is designed to help address claims involving professional services, such as placement-related disputes or alleged miscommunication.
At Mason-McBride, we work with staffing firms across industries and help them explore insurance options aligned with the nature of their business operations.
What Is E&O Insurance?
Errors and Omissions Insurance—also known as Professional Liability—can provide financial protection if a client alleges your services caused them to experience a financial loss. In the staffing world, this could involve:
- Placing a candidate who does not meet a client’s expectations
- Disputes over job descriptions or qualifications
- Claims involving incomplete background checks or vetting
- Allegations that a temp worker caused a disruption or failed to perform assigned duties
Even unfounded claims may lead to costly legal expenses. E&O coverage may help cover defense costs and certain types of damages, subject to policy terms and exclusions.
Why It Matters for Temp Staffing Firms
Staffing firms often operate in fast-paced environments where client requirements and job scopes can shift quickly. Temp staffing agencies may encounter E&O risks related to:
- Quick turnaround placements
- Ambiguity in assignment expectations
- Varying supervision levels at client job sites
- Challenges around classification and documentation
Having insurance in place for professional service exposures can be an important part of a staffing agency’s overall risk management approach.
How We Help Staffing Firms
At Mason-McBride, we help temp staffing agencies evaluate their exposures and compare options from leading insurance carriers. Whether you're a local firm or operate in multiple states, we can help find coverage that aligns with the types of workers you place and the industries you serve.
We can assist with:
- Reviewing client contracts for insurance requirements
- Placing coverage for high-risk industries like healthcare
- Coordinating Workers’ Compensation and E&O policies to avoid coverage gaps
- Renewals and audits as your firm scales
Talk With an Advisor
If you're a temporary staffing agency looking for guidance on E&O insurance or need help reviewing your current policies, we're here to help.
Contact Mason-McBride to start the conversation.
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