While most businesses need a commercial general liability (CGL) policy, those in the staffing industry need to examine this type of coverage for any possible exclusion, and this is especially true of temp agencies. In addition to CGL coverage, they will benefit from other policies that directly relate to contract work and temporary staff employees.
Temporary staffing liability concerns
A temporary staffing agency, or any business using the services of a temp staff agency, needs temporary staffing insurance that covers liability issues. This will provide coverage for claims arising from “wrongful acts” of a temp employee, or independent contractor, within the scope of the duties of their job. This is the policy that fills any potential gaps in a CGL policy.
For example, if a temp agency places a temp worker at a place of business and the temp ends up causing an injury to another employee or anyone else on the premises, the agency will be covered by their temporary staffing liability policy but would not likely be covered by a CGL policy.
Employment Practices is also a vital insurance policy to have
Another important coverage that all companies, including staffing agencies, should have is employment practices, which is needed when an employee claims they were unfairly treated, whether it is harassment, discrimination, unfair hiring practices, or any claims that should primarily be investigated by the human resources department.
Screening job candidates properly is an important step in reducing employment practices claims for anyone looking to hire a new addition for their company. It is indeed important to find the right fit, but this is a process that may take time and should be performed properly. Staffing agencies must work hard to find workers who are not only qualified for the position, but will successfully assimilate into their new place of employment, therefore asking the right questions in the initial interview process is a prominent key to success.
The point of the interview process is to maximize the quality of information obtained from a candidate, which also requires an intimate knowledge of what can and cannot legally be asked of the applicant. By asking the wrong questions, the interviewer can leave the agency open to temporary staffing insurance risks as well as a myriad of liability concerns.