Starting a Staffing Firm: What Insurance Do You Need?

One of the first things to assess when you’re preparing a startup is the range of risk management tools you need in place just to get off the ground. They tend to be very industry-specific, just as your space and equipment needs will be. When it comes to starting a staffing firm, your needs will revolve around the unique situation you are in with regard to employee liability as an outside contractor supplying labor to client companies. So, what makes liability insurance different for staffing firms? For one, you share liability with the client for many risks other employers undertake on their own.

Contracted Labor & Shared Liability

As the employer of record, you are responsible for providing basic mandatory insurance coverage like workers’ compensation when staff work in locations requiring it. You may also need separate employment liability coverage if workers are in areas without a workers’ compensation requirement. So, what makes your risk exposure unique? While you are the employer of record, you usually share joint liability with the contracted company for losses where your staff is acting on behalf of the customer.

Find Staffing Firm Liability Coverage Today

Since your general and extended liability coverage needs will be unique to the types of work your people are contracted to do, the best way to shop for coverage is to solicit a quote. Professionals who focus on providing insurance to entrepreneurs starting a staffing firm will have an interview process designed to support your needs, even the ones you have not anticipated for yourself.

Frank