Job seekers need work. Companies need to hire qualified employees. What’s
the missing link? Oftentimes, employment agencies act as a go-between to
facilitate staffing solutions between the two parties—whether they
specialize in temporary work, full-time personnel placement or other area.
If you ask people how they found their jobs, sooner or later someone will
say they went through an agency. According to the American Staffing
Association, this “staffing, recruiting, and workforce services industry”
helps place more than
15 million employees
in jobs annually.
So, besides the right industry connections and resources, what does it take
to run a successful employment agency?
Business insurance for employment agencies
protects these organizations against financial fallout from lawsuits and
more. Here are three reasons to secure this coverage before playing
matchmaker between job seekers and hirers.
Someone seeking work slips in your lobby
Although the internet has made the hiring process more convenient,
employment agencies usually still experience and influx and outflow of
people, whether they enter your office for an interview or drop off some
paperwork. Anytime people besides employees are on your premises, you could
be held liable for any injuries or property damage they sustain.
If it’s a slushy mid-winter’s day and somebody falls hard in your lobby,
you could be on the hook for the cost of an ambulance ride, emergency room
visit and follow-up care—not to mention any lost work and additional
suffering. Luckily, general liability insurance covers financial liability
stemming from third-party visitors to your property. Similarly, workers
compensation exists to cover costs resulting from employee
injuries and accidents
Workers allege discrimination or professional negligence
Employment agencies need to pay special attention to anti-discrimination
statutes so they can operate fairly for everyone. As
, this means staffing firms and their clients “may not discriminate against
workers on the basis of race, color, religion, sex, national origin, age,
or disability.” Employment agencies may face lawsuits stemming from
allegations of discrimination, professional negligence, misrepresentation
and many other complaints. In order to defend themselves without going
under financially, they’ll need professional liability insurance to cover
the costs of
legal defense and settlements
Electronic data breaches are on the rise; you’re a target
Cyberattacks and resulting data breaches are on the rise. Employment
agencies deal with employee records with information valuable to hackers,
including names, addresses, Social Security Numbers and more. This makes
them a target for cyberattacks. For example, a state employment agency
security vendor was hacked in Illinois earlier this year, exposing the
information of approximately
1.4 million residents
In cases like these, cyber insurance
steps in to shoulder first-party and/or third-party costs, depending on the
specifics of the policy. With electronic risk on the rise, it’s important
to not only have a strong cybersecurity plan in place, but to also plan for
the aftermath of a breach to salvage your agency’s finances and reputation.
As you can see, business insurance for employment agencies is a necessary
financial safeguard against all many unknown variables. Find affordable,
fitting coverage with free quotes from CoverHound!