Recapping 2019 and Looking Ahead in Staffing
If you are monitoring the state of the insurance market these days (Assurance sure is!), then you are all too familiar with the term “hard market” – check out this recent blog post on what you can do to prepare for a hard insurance market. The staffing industry is certainly not immune to such market fluctuations that impact insurance pricing, capacity and your overall cost of risk. Now more than ever, it’s important to partner with an insurance broker that knows the staffing industry and can help navigate you at every turn of the market.
Being at the forefront of staffing requires greater creativity than ever before. Aside from the state of the insurance market, talent acquisition remains a key issue for all companies (not just staffing firms). With record low unemployment rates lessening the candidate pool, it’s crucial to stay ahead of the competition and understand the industry around you.
Here are a few hot topics in staffing that dominated 2019 and will continue to dominate in 2020:
- Attracting and Retaining Talent –As unemployment rates continue to drop and jobseekers decrease, the competition for talented job candidates has tightened tremendously. The following are just some of the many tips we suggested throughout the year:
- Build and maintain strong lines of communication with employees and candidates
- Offer voluntary benefits that will help put money back in your employees’ pockets
- Identify through employee surveys what they need in terms of benefits and do a pulse-check on your existing offerings
- Invest in a “best-in-class” candidate experience
- Invest in employee wellness programs (biometric screenings, promote carrier’s perks, offer health education, etc.)
Discrimination and Harassment Claims –Since staffing companies have a unique set of exposures, it’s critical for those in the industry to ensure that the definition of “employee” extends to placed employees as well. Offering Employment Practices Liability Insurance (EPLI) allows for coverage of a wide variety of employment related exposures for staffing companies from EEOC and discrimination claims to sexual harassment and more. But keep in mind that securing Employment Practices Liability Insurance (EPLI) is just one piece of the puzzle. More importantly, invest in training programs to prevent behaviors that trigger allegations in the first place. Contact your Assurance representative for how we can help!
- Preparing for a Hard Insurance Market – During a hard insurance market, there’s a diminished supply of insurance causing coverages to be condensed and rates to go up. We have been experiencing a rapidly hardening insurance market since the start of last year, so it’s crucial to stay prepared and ahead of the renewal process. Here are six things to expect during a hard market:
- Premium increases/lack of affordable coverage
- Increased scrutiny on submissions
- Restrictions in coverage
- Unavailability of higher limits or coverage enhancements
- Conditional or non-renewal notices
- The need to change carriers, work with a greater number of carriers, or obtain coverage through the excess/surplus lines marketplace
- Data Security – The personal information of 711,000 jobseekers was exposed when a hacker gained access to a server at a specialist recruitment firm in the UK. This is a prime example of why it is extremely important for recruiting and staffing companies to invest in cyber insurance. Are you still not convinced? Here are five additional reasons we mentioned in 2019 as well:
- Privacy Liability
- Notification, forensic and legal costs
- Business interruption and system damage
- Cyber extortion
- Cybercrime/social engineering
To get to better know our team and all where we were last year to stay committed in driving down your total cost of risk, check out our latest infographic.
- New Staffing Talent Acquisition and Retention Strategies
- Avoiding Employment Practices Liability Claims
- Preparing for a Hard Insurance Market
- 5 Reasons Why Recruiting & Staffing Companies Need Cyber Insurance
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