Insurance for Employment Placement Agencies

The risks to staffing agencies can be great, regardless of whether you hire for temporary or permanent employment. Risk starts the moment you interview a potential employee. If you chose not to hire them you could face charges of discrimination for not hiring, sexual harassment and other potential liabilities.

The cost of coverage will depend on the policies you purchase, the types of professions you specialize in, and the annual revenue of your company. For instance, General Liability insurance can be as low as $300/year. Professional Liability (E&O) insurance as low as $600/year. Commercial Auto insurance averages $3,000 a year. A Workers' Compensation depends on the number of employees you have and starts at a few hundred dollars a year.

Yes, depending on how many employees you have it is likely mandated by your state that you carry it. After the first employee is hired it is prudent to take out a Workers Compensation policy.

You can build in risk mitigation processes and procedures. Your customer contracts should include indemnification clauses in your favor and you should set your customer's expectations when starting a relationship. Often, overpromising services can get a staffing company in trouble.