2014

Key Policies: Business Insurance for Employment Agencies and Staffing Firms

Employment agencies have particular liabilities and insurance needs that other businesses don't have. Insureon's agents will tailor an insurance plan to meet your business's requirements and budgetary restrictions.

We work almost exclusively with small businesses and know which insurance you need to cover your business and which policies you can do without. There are several policies that your business should know. They are…

General Liability Insurance for Employment Staffing and Job Recruitment Agencies

General Liability Insurance covers your employment agency from certain types of lawsuits filed by your customers, clients, vendors, and other people not employed by your business. Covered lawsuits include claims that your business…

  • Caused physical injury or created an environment that led to an injury.
  • Caused advertising injury.
  • Damaged a third party's reputation.
  • Damaged a third party's property.

General Liability Insurance can protect your business when someone is injured on your property. Every day your business interacts with a variety of people. Clients, deliverymen, vendors, and others all visit your office. When a deliveryman falls, walking up your steps, they could sue your business for thousands of dollars.

In a personal injury lawsuit, you'd have to pay lawyer's fees, court expenses, and possibly damages the judge awards the plaintiff. General Liability Insurance can pay for all these legal expenses, helping your business avoid massive legal bills.

Property Insurance for Full Time and Temporary Employment Agencies

Property Insurance can ensure your business is able to withstand a sudden disaster or incident that damages your property. Covered Property Insurance claims include…

  • Fire.
  • Theft.
  • Vandalism.
  • Weather events specified in your policy.

Many landlords will require their tenants to purchase this insurance in order to sign their lease. One reason for this is that if your business starts a fire that damages the landlord's property, your Property Insurance can cover damage to your office space as well as the rest of the building.

Not all weather events are included in your policy. Depending on the policy, floods, hurricanes, and other disasters may not be covered. If there is a specific weather event that your business needs covered, ask our agents.

Property Insurance reimburses your business for the value of the property that is lost or damaged, which means there is a question of how to value your equipment, supplies, and other property.

You can either buy a policy that insures your property for its full replacement value or one that insures it for its current, depreciated value. Replacement value policies have higher premiums, but if your computers are damaged in a fire, these policies will pay your business to replace them with new versions.

Actual cash value policies only cover the current, depreciated value of your property. If you bought a computer for $1,500 a few years ago, now it's probably worth about $500. Actual cash value policies would only repay your business for that $500 amount.

Business Owner's Policies for Job Search Agencies

Business Owner's Policies (or BOPs) provide your employment agency with two insurance policies at a discounted price. These policies include…

  • General Liability Insurance.
  • Property Insurance.

You may be wondering, How are insurance companies able to offer lower-premium insurance? By only selling these policies to small businesses with lower insurance needs, insurers can drop the price on these two important policies.

Nearly every business has to purchase General Liability and Property Insurance, which means a BOP can be a smart way for your business to cover its bases and save money.

Because not every business qualifies for this discount, our agents will have to determine whether your employment agency can purchase a BOP. Insurance companies typically sell this policy to small businesses that…

  • Don't need more than 12 months of Business Interruption Coverage (a policy sold as a part of Property Insurance that reimburses your employment and staffing agency when a fire or other covered claim forces your business to temporarily shut down).
  • Don't work in large offices / workplaces.
  • Don't have a higher risk profile.

Many small businesses qualify. Fill out our online insurance form, and let our agents try to get this lower-cost insurance policy you. We'll query insurance companies and send you a free quote.

Cyber Liability Insurance for Employment Agencies and Staffing Firms

As an employment agency, your business has a lot of personal data on its networks. Your files may have information on thousands of different employees and the companies that hire them.Cyber Liability Insurance (also called Cyber Risk Insurance or Data Breach Insurance) protects your business when this data gets hacked.

There are two types of Cyber Liability Insurance, but your business will probably only need First Party Coverage. This policy helps your business respond to an attack on its own networks and computers.

The other type of Cyber Liability Insurance is called Third Party Response and it is mostly for IT professionals who are liable for other businesses' network security.

You may be wondering what a cyber attack is. These criminal acts are when someone hacks into your network, smartphone, computer, VPN, or other networked electronic device. Hackers often seek personal data like SSNs, bank account information, credit card numbers, and other information that would allow them to steal someone's identity.

When a hacker breaks into your network, First Party Coverage can pay for your business to…

  • Investigate the attack, how your security was breached, and who was responsible.
  • Launch a P.R. campaign to help restore your staffing firm's reputation.
  • Hire a crisis management team.
  • Monitor your client's credit for signs of fraud.
  • Contact your clients and other people whose data may have been breached.

In addition to helping you recover, Cyber Liability Insurance protects your business from the P.R. nightmare that happens when a client's data is compromised.

Errors and Omissions Coverage for Employment Staffing and Job Recruitment Agencies

Errors & Omissions Insurance (also known as E&O Insurance or Professional Liability Insurance) is another liability insurance, which means it pays for certain types of lawsuits that target your business. More specifically, E&O Insurance pays for your professional liabilities as an employment agency.

Clients and customers can sue your business if the employee you send them makes mistakes, is unsatisfactory, or is not what they expected.

Let's say you recommend an employee for an accounting firm. The employee exaggerated their skills on their resume, and now they've made an accounting mistake that is going to costs the firm a lot of money. When the company sues your business, the lawsuit could cost your business tens of thousands of dollars or more. Fortunately, your Errors and Omissions Insurance can pay your legal bills.

It's fairly standard for contracts to require small businesses to have E&O coverage. Your business partners will want to make sure your professional liabilities are covered. Contact an insureon agent today for a free quote.

Workers' Compensation Insurance for Full Time and Temporary Employment Agencies

As an employer, your agency is almost certainly required to purchase Workers' Compensation Insurance (also called Workers' Comp or Workman's Comp).

Workman's Comp can pay for medical bills, legal expenses, and other costs when an employee is hurt or made ill by the work they do for your employment agency. It can pay for…

  • Wages for employees who cannot work while they recover from a workplace injury / illness.
  • Employee medical expenses.
  • Legal expenses for employers when their employees sue them over accidents, injuries, etc.
  • Support payments to dependents of deceased employees.
  • Funeral costs.

Workplace accidents and illness can happen in any work place at any time. When an employee trips down the stairs, your business can be liable for their injuries, lost wages, and other expenses.

Insureon: Custom-Built Small Business Insurance for Employment Agencies and Staffing Firms

Complete our online application, or contact an insureon agent today for a free small-business insurance quote.

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