Archive for the ‘Staffing Company Insurance’ Category

Having Difficulty Obtaining Worker’s Compensation Insurance For Your Staffing Firm?

Wednesday, February 22nd, 2012

Why do you need to carry worker’s compensation insurance on your temporary staffing placements?

Most State and Federal jurisdictions make the temporary staffing firm responsible for covering their placements under worker’s compensation insurance. In the majority of states, temporary placements are considered employees of the temporary staffing firm, and not employees of the client company seeking the temporary staffing assistance. The responsibility ultimately is on the staffing firm if a workers compensation claim were to be placed.

Why is worker’s compensation insurance difficult to obtain for the temporary staffing industry?

Lack of prior worker’s compensation insurance, poor loss experience and/or inadequate safety procedures are most often the root cause(s) of not being able to obtain coverage and control rising costs in this area. Our insurance company will work with you to provide you with a quote that fits your circumstances.

Making your workers compensation policy easier for you

No matter what size staffing firm you may have, having procedures in place to control your worker’s compensation losses and performing proper screening of employees will aid in this process. These may include, but are not limited to, background checks and investigation into any prior workplace injuries the potential employee may have suffered. In addition, the placement of employees in less hazardous working environments will be beneficial in these areas.

What are the options for obtaining worker’s compensation insurance on your staffing firm?

Be prepared to share the following items with underwriters: Resume on all owners Business Plan, if any ProForma financial statement (new starts) 3 Year Loss Runs (5 if available) Copy of Safety Policy or procedures Client listing (physical address and class codes applicable) Experience Modification Worksheet (if available).

Request information regarding pay plans available (direct billed, monthly payroll reporting, financing plans). Are there minimum annual premiums that will apply?

In Conclusion:

Work with a knowledgeable and professional insurance representative in prequalifying insurance carriers to fit your needs. Your insurance representative should have the capability of placing your business with more than one insurance carrier and assist with Loss Control measures. Not only will this help to increase your business profitability, but it will aid in the future purchase of insurance coverage at reasonable prices.

Our Georgia insurance company is here to help you better understand your insurance needs. We would love to answer more questions you may have on insurance for a staffing firm. Our insurance agency believes good insurance is built on relationship, so help us get to know you more by joining us on Facebook and Twitter.

For further information on this topic, please contact Mike Garver mgarver@southernstatesinsurance.com 678-715-0363.

Tags: staffing firm, temporary staffing, temporary staffing insurance, workers compensation insurance, workers compensation insurance policy, workers compensation insurance quote, workers compensation loss runs
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Is Your Insurance Program Adequate To Protect Your Permanent Or Temporary Staffing Firm?

Friday, August 26th, 2011

Staffing Firm Candidates

What Kind Of Insurance Programs Are Available To The Staffing Industry?

There are a multitude of insurance programs available to the Staffing industry. Here are just a few you should consider for your staffing firm:

Property and Operational Liability
Hired & Non-owned Automobile Liability
Employment Practices (Employment Related) Liability
Errors & Omissions Liability
Third Party Fidelity Bond
Worker’s Compensation (including PEO worker’s compensation)
Benefits & Healthcare for full & part-time (temporary) personnel
International insurance for those firms placing personnel worldwide

Why Do You Need Third Party Fidelity Coverage?

Fidelity coverage can be tailored to protect not only the dishonest acts committed by an employee, but your Client’s loss sustained by the dishonest acts of an employee placed with them. Clients appreciate this extra layer of protection for their business!

In a recent case in the Midwest, a temporary employee placed with a client was caught stealing inventory and selling the merchandise for her own personal gain. Fortunately, the Staffing firm had enough 3rd Party Fidelity coverage in place to protect the client for this loss. The former employee is now enjoying time in jail, and the client company received payment of over $78,000 for their losses.

Why Do You Need Errors & Omissions Liability Coverage?

Errors & Omissions Liability protection can also be structured in various manners. The wrongful acts of your own employees, and those placed with your clients on a temporary basis, can be covered. It can also extend to include allegations for your professional placements.

Over the years, there have been many instances where Staffing companies have been held liable for failing to disclose an employee’s criminal record to a client company. One such case involved a formerly convicted sexual offender that was placed with a client on a temporary basis. This individual proceeded to commit sexual offenses against other employees during their assignment. Over $300,000 in legal fees were involved, and settlement costs equated to over $1,000,000. The Staffing firm had an Errors & Omissions Liability policy that not only covered all legal fees, but the settlement costs as well.

Who Can Provide These Essential Insurance Coverages?

Finding the right insurance agency to handle all of your needs can be complicated. The firm selected should be capable of providing the following services (at a minimum):

Professional & knowledgeable staff that has worked with the Permanent & Temporary Staffing industry extensively.
A firm with adequate availability of insurance markets for full placement of your insurance needs.
A firm capable of tailoring any insurance product to meet your professional needs.

For more information about Temporary or Permanent Staffing Company Insurance, contact me at MGarver@SouthernStatesInsurance.com or call me at (678) 715-0363.

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Why Staffing Companies Need Errors & Omissions Insurance

Thursday, June 16th, 2011

Posted on June 16, 2011 by Mike

The Staffing Industry performs a professional service for others and can be held legally accountable for their actions. Lawsuits can be brought against any professional for alleged, or actual, mistakes. Defending against these suits can be costly, even if no error was made!

What is Errors & Omissions Liability Insurance?

Errors & Omissions Liability insurance protects your company against alleged wrongdoing. These can include such things as misrepresentation with a client, failure of a worker to perform as promised, and simply honest mistakes that occur in the normal course of business.

When Should You Buy It?

It is highly recommended you obtain this coverag at the inception of your business. It is wise to purchase this protection before the onset of any client dealings and personnel placement.

Why Do You Need It?

Errors & Omissions Liability insurance is not covered by your General Liability policy. Adding this coverage to your insurance portfolio will not only provide the protection you need, but it will also provide legal defense which can be quite costly with any litigation.

Take for example the case of an internationally known IT firm that hired several personnel from a staffing firm. Two of these personnel were caught stealing trade secrets and were promptly terminated. The IT firm sued the staffing recruiter because of discrepancies on the personnel background checks. The jury found the staffing firm guilty of professional misrepresentation and awarded the IT firm with a $1,000,000 judgment for damages.

Are you prepared to pay out-of-pocket due to inadequate insurance for such claims? With the ever-increasing cost of lawsuits, I highly recommend adding this protection to your insurance program.

For more information about Errors & Omissions and temporary staffing insurance, contact me at MGarver@SouthernStatesInsurance.com or call me at (678) 715-0363.