What is Staffing Agency Liability Insurance?
Staffing Agencies can be held responsible for the activity and performance of the personnel they place with their clients. Even the actual personnel can sue them for workplace harassment and other on-the-job issues.
CMI specializes in providing professional liability insurance, employment practices liability, as well as general liability/property packages for temporary, permanent, and labor leasing firms. Our offerings include:
Errors & Omissions (E&O): Protects against claims by the client for the poor performance of an employee, or by the employee for placing them at an undesirable company.
Employment Practices Liability Insurance (EPLI): Protects against claims for harassment, discrimination, wrongful termination, retaliation, and a variety of workplace torts.
Our Staffing Agency professional liability insurance may also include:
E&O and EPLI in one broad policy
Defense costs outside the limit of liability
Occurrence form for both E&O and Employment Practices Liability
No deductible for E&O coverage
Duty to defend. Dedicated to the resolution of claims, the insurer will appoint skilled counsel to defend covered claims
Personal injury coverage for emotional distress and mental anguish
Coverage for medical and professional temporary employees carved out of the bodily injury/property damage (BI/PD) exclusion
Coverage for placement of independent contractors
Coverage available for placement of architects and engineering professionals
Why it’s smart to have Staffing Agency Professional Liability insurance
A staffing professional sent a woman’s resume to a potential employer. However, the resume was in fact sent to a subsidiary of the candidate’s current employer, leading to ridicule and harassment by her managers. She quit her job and sued the staffing firm for emotional distress and lost wages. Defense costs exceeded $40,000.