The Benefits and Risks of Vendor Management

Vendor management services have become a common approach to staffing contingent or temporary workers. These automated or otherwise outsourced systems assist staffing firms with the recruitment, screening, placement, and management of workers. When a firm outsources vendor management, it is vital that all requirements for staffing insurance continue to be met. These services could otherwise expose the staffing firm to risk or cause gaps in insurance coverage for contingent workers.

Could Vendor Management Introduce New Risks?

Many contracts between vendor management and staffing firms require that the latter assume full liability for the recruitment, screening, and placement of workers through the external service. If a vendor management provider alters or varies from the procedures of an insured staffing firm, they may introduce new risks to an operation that would otherwise be protected. Some providers of staffing insurance offer additional services related to due diligence and oversight to assist agencies or firms entering into vendor management partnerships.

Staffing Insurance and Vendor Management

It may be beneficial for an insurance provider to oversee vendor management and ensure that the priorities of reducing risk and preserving protection from liabilities remain foremost. Staffing firms and vendor management services should work together to make sure that firms do not fall short of insurance plan requirements.