Many insurance policies cover direct employees of a business but not temporary workers, creating possible coverage gaps. Your staffing agency must secure the right plans for your company. In addition to general and staffing liability coverage, you should obtain an employment practices liability endorsement.
How Does It Protect My Business?
EPLI insurance coverage protects your firm from many types of potential lawsuits, including claims related to:
- Termination of employees
- Refusal to hire
- Sexual harassment
- Withholding of opportunities
- Emotional distress
- Mismanagement of benefits programs
Employees filing this type of claim usually name both you and the place where they work. Typically, staffing liability and general liability policies exclude the above claims.
Why Is This Coverage Essential?
While large corporations often receive legal claims against them, small businesses are not immune to these types of lawsuits. Unfortunately, even if your agency is not at fault, claims can damage your professional reputation. There has been a significant increase in employment practice cases in recent years, and settlement costs are also rising. The associated legal defense and judgment costs could mean a devastating financial loss for your company.
As a temporary staffing firm, you face unique risks related to employment practices. Consult a staffing insurance company to ensure your business has adequate protections in place with EPLI insurance coverage.