Using temporary staffers can be a great resource for companies of all types and sizes. Temp employees are often utilized to fill voids in the workforce. In this type of business arrangement, staffing insurance is designed to protect these workers. Staffing firms possess unique insurance needs since the positions being filled can vary dramatically from one firm to the next.
Specialty insurance companies are better suited to serve this industry. Workers compensation, general liability, and professional liability can often be large expenses and represent areas of significant exposures for these companies. You need to protect your business from the many risks faced daily with insurance solutions underwritten by “A” rated insurance carriers.
Certain risk management issues inherent in staffing
Most companies, when determining that a temporary employee is needed, will seek out a staffing agency based on who can deliver the best candidates. However, any business relationship with a staffing company should be reviewed quite carefully given that clients of temporary employees are typically in a “co-employment” relationship with the agency chosen.
There are some serious considerations involved in evaluating these types of agencies. A staffing firm should maintain all employment-related records and provide a handbook and training to its employees regarding key labor and employment issues. There are essential materials that should be included in the hiring process and should be made available for review by clients.
Temporary employees are often exposed to sensitive and confidential material while on assignments. A confidentiality agreement allows the agency to address, with the employee, the importance of maintaining confidential information and can assist with the risk management requirements of a client, such as liability and malpractice insurance coverage criteria.
State and federal employment laws require employers to also have a policy against harassment. A staffing firm should have a strict policy against harassment in addition to a training program for new hires. There is, in addition, a need to have a formal safety policy and illness and injury prevention program. New hires should be given a complete written program that addresses safety and accident reporting procedures.
In co-employment, issues that normally fall to one employee may affect one or more participants. Having staffing insurance helps to address any number of concerns that may arise.