An employment agency helps both employees and companies looking for workers. They hire employees and place them with positions at different companies, and work closely with local businesses that need temporary or permanent work. The employment agency provides an essential service, but is also prone to business risks like professional liabilities. To protect your risks, you should get employment agency business insurance.
Types of Employment Agency Insurance
There are a variety of types of employment agency insurance, each of which covers a different risk you are exposed to. Here are the most important ones to consider:
The first policy you will most likely obtain is general liability insurance. For an employment agency, the most important part of general liability is premises liability. This covers any injuries sustained while on your business property. If a client is visiting you, and they trip over a crack on the sidewalk leading to your office door, you are liable for it. General liability will cover the medical and legal costs.
Professional liability insurance, commonly referred to as errors and omissions, protects you from any lawsuits and litigation’s arising out of the professional services you provide. You have a considerable risk of liabilities in your life of work, such as companies suing you for damages the employees you sent to them, caused. This may be from poor training of employees, or natural mistakes. If the company sues you because your temporary employee caused them financial loss due to a mistake or omission on your part, professional liability insurance will cover it.
If you or your employees visit company locations or make other business-related trips, you need to be covered by business auto insurance. This policy is essential because it covers property damage, bodily injury, theft and vandalism. If you are going to a job fair to interview potential candidates and get in a vehicular accident, any injuries or damage caused, is covered by the policy.
Whether from extreme weather conditions, a fire or flood, and natural disasters, your business property is also at risk for damage,. If an earthquake occurs near your employment agency, the damage it causes to your building is covered by business property insurance. This insurance policy also helps to replace any contents of your property that was destroyed, like papers, books, furniture or electronic equipment.
If you have an online website where you advertise your employment agency services, you also need a cyber liability insurance policy. Cyber crimes, such as any fraudulent activity or viruses on your website, could infect your computer, servers, and those of your visitors. Any financial loss or legal costs resulting from these crimes is covered by the cyber liability insurance policy.
Your employees need protection from work-related injuries or illnesses with the help of workers’ compensation. This includes employees in your office as well as temporary employees who are at other job sites. Injuries like repetitive motion injury, back problems, slips and falls, or eye strain are all covered by workers’ compensation. It allows the medical costs to be covered and prevents employees from suing you for damages, and is an important component of employment agency insurance.
Employment Agency Crime Insurance
Your employment agency is exposed to different crimes, including theft, vandalism and dishonest employee practices. Crime insurance provides excellent coverage of these crimes. For example, one of your office workers might embezzle money if they handle your accounting; with crime insurance, you don’t need to suffer the loss as a result of the theft of money.
These insurance policies are the most important ones to consider purchasing for your employment agency. By covering common and less common risks, you have the most employment agency insurance coverage possible for your business.