Lawsuits and claims are a costly reality for staffing agencies. From workers’ compensation exposures to professional liability concerns, unexpected events can present financial and operational challenges for your firm.
At Mason-McBride, we understand the importance of evaluating the risks associated with each placement. Ensuring appropriate insurance coverage for employees and operations can support both your business continuity and your client relationships.
With more than a century of experience, our team collaborates with industry partners and insurance carriers to help staffing firms explore coverage options, even for harder-to-place risks.
Understanding the Unique Risks Facing Staffing Agencies
When running a staffing agency, there’s more to consider than simply matching candidates with open positions. Each placement carries its own potential for risk, both for your agency and your clients.
Consider the following scenarios:
- Mismatched Placements: If an employee is placed in a position for which they're not fully qualified, lacking necessary skills, certifications, or experience, there’s a chance of workplace accidents, damage to valuable equipment, or even harm to others. Such incidents can lead to lawsuits holding your agency responsible for improper placement.
- Reputational Concerns: A poor hiring match can reflect negatively on your agency’s reputation, potentially causing you to lose client trust or face negative publicity.
- Employment Practices Risks: Staffing agencies are also exposed to claims related to hiring practices. For example, if a candidate feels they were unfairly denied a position, they may allege discrimination, creating exposures that may require specialized coverage.
Thoughtful risk management isn’t just about safeguarding your finances, it’s about protecting relationships with clients and candidates alike.
Coverage Solutions for Modern Staffing Operations
We offer access to a broad range of business insurance options, including staffing-focused programs that address industry-specific risks. Coverage needs vary depending on company size, job types, and client expectations. Key coverage types include:
Workers Compensation Insurance:
Staffing agencies have unique workers’ compensation concerns. Workers compensation insurance provides benefits to help employees recover from work-related injuries or illnesses. It can also benefit employees' families if they lose their lives in a workplace accident. Factors such as job risk, claims history, and payroll size can affect workers' compensation costs.
General Liability Insurance:
General liability insurance helps protect staffing firms from claims related to bodily injury, property damage, advertising injury, and specific errors or omissions. Legal expenses, such as attorney fees and settlements, may become out-of-pocket costs without this coverage.
Cyber Liability Insurance:
Cyber liability insurance can help staffing firms respond to data breaches involving personally identifiable information. Many policies also include coverage for extortion, business income loss, and system failures resulting from a cyberattack.
Professional Liability Insurance:
Also known as Errors and Omissions (E&O), professional liability insurance can help protect your staffing agency from consequential loss resulting from negligence claims associated with your professional services. Professional liability claims involve allegations whereby the customer alleges they lost revenue or incurred expenses because of the negligent rendering of professional services.
Business Property Insurance:
Business property insurance covers equipment, signage, inventory, and furniture in the event of a fire, storm, or theft. However, it doesn't cover mass-destruction events like floods and earthquakes.
Why Work With Mason-McBride?
- Focused Experience: Our team has supported staffing and employment agencies through changing workforce trends and evolving risk landscapes.
- Independent Agency Access: We work with multiple carriers to help you explore policy options suited to your specific operations.
- Personalized Support: We conduct coverage reviews and collaborate with you to address placement-specific risks.
Ready to Protect Your Staffing Agency?
Discover how our insurance programs can support your staffing agency. Complete the form below to request more information