When you’re planning your risk management portfolio, some types of insurance are just easy to figure out. General liability, for example, is useful to practically every company. Similarly, you know you will need workers compensation if you run a staffing business in the U.S. What you might not realize is that there are also specific insurance products designed just to protect staffing businesses. Until you find a carrier who is prepared to meet those needs, you haven’t figured out all of your insurance requirements yet.
Employment Practices Liability Insurance
There are a couple of products staffing businesses need, but employment practices insurance is especially important when your job is screening applicants for another company’s business. That’s because a staffing company has a business model that is entirely based around selecting people for jobs, a task that is especially open to accusations of discrimination, nepotism, and other unfair placement practices. Even if there is nothing to the accusation, the volume of employee placement and interviewing that staffing companies go through means they face risks in this area that are much greater than those faced by the average company. This coverage doesn’t just protect you against damages, either, it also provides for legal expenses related to fighting inaccurate accusations when they arise, up to the policy limit.