Your Coverage Double Check
When it comes to your insurance policy, it's important you make a list of your current coverages and then perform your coverage double check. Coverage options for temporary staffing agencies vary and can be numerous, especially from carrier to carrier. As a staffing agency, you have unique liability exposures that are not commonly covered under a standard insurance policy. Unless your policies are written on non-standard forms tailored to the staffing industry or modified through endorsements, some of your most likely liability claims may be excluded from coverage. Often, these gaps in coverage go unnoticed until an uncovered claim forces the staffing agency to pay damages out of its own pocket.
- Coverage for property of others in the care, custody and control of your employees under your General Liability policy
- Coverage for temporary employees driving client vehicles under your Auto Liability policy
- Coverage for temporary employees negligent actions under your Professional Liability/Errors & Omissions policy
- Coverage for a suit made against your client by one of your temporary employees under your Employment Practices Liability policy
- Coverage for theft of your clients property by your temporary employee under your Crime policy
Example Claim ScenarioA temporary employee is working at your client's warehouse, moving boxes with a forklift. The employee loses control of the forklift, running into a wall and causing damage to both the forklift and the wall.
General Liability policies cover bodily injury and property damage claims that arise during the course of your day-to-day business. A standard General Liability policy has an exclusion for damage caused to property in your (or your employees) care, custody, or control. Therefore, unless your policy was endorsed to remove this exclusion or to add a specific sub-limit for this coverage, it would only provide coverage for damage to your client's wall, but not to the forklift.
To keep your claims costs on the nice list this year, ensure you have the aforementioned coverages.
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