First, before we begin to explain the common mistake with Staffing Company’s insurance coverage, we want to provide some explanation for staffing companies and how to help them be properly insured.
To begin to explain the problem, we need to provide some background information on the types of staffing companies. There are two basic types of staffing companies, and each are insured differently:
- Contract / Temporary Placements — Contract staffing companies, also known as temporary placement staffing companies, place employees where companies say they have a need. With temporary staffing employees they are legally still under the staffing firms coverage. The staffing company is responsible for the general liability and workers compensation in the event of an insurance claim, if the employees are temporarily placed.
- Permanent Placements — Permanent placement staffing firms operate as head hunters. Permanent placement staffing companies place a person into a position of need and contract them out to a company’s requested need. The employees are permanently released and the liability and workers compensation coverage are found with the new company.
The Mistake Being Made By Other Insurance Companies When Writing Staffing Company Insurance Is…
We continue to find policies written incorrectly where companies are recorded under the wrong type of staffing insurance policy. Why does this matter? Because there exists a good chance that if the policy is incorrect:
- The insurance policy isn’t actually covering your employees.
- You are paying too much for insurance coverage you don’t need.
We believe it is increasingly common simply because of a lack of knowledge on how to properly write coverage for staffing companies. You could be paying for insurance that actually isn’t covering your needs!
How To Be Sure You Have The Staffing Insurance You Need
The only way you can be sure you have the best insurance for your business is by talking with a professional. You need to get a copy of your insurance policy and review it with a licensed insurance agent, or talk over the phone about your business and your insurance coverage. Southern States Insurance can help determine if you have good insurance for your staffing company’s unique needs.
Mike Garver has made a great impact with Southern States Insurance and writes a great deal of staffing company insurance policies. Mike would love to become your insurance agent or simply provide you with the needed guidance your staffing company is longing for. We believe in helping our clients succeed and confidently know it begins with good insurance and is carried out by strong relationships. Learn what we can do for you, but be sure your staffing company has insurance coverage that is applicable to your companies risk exposure.