Staffing Agencies: Who Insures the Employees?

Staffing Agencies: Who Insures the Employees?

Employees are a vital part of most businesses, big and small. The majority of people require at least a handful of people to help with running a business and handling different pieces of work. Unfortunately, there’s no guarantee that their actions won’t lead to problems, no matter how well they’re trained—accidents happen and things can go wrong. Furthermore, there are employee-specific issues that need to be handled by insurance. This is why there are often insurance policies in place to cover the costs of employee issues. When hiring out temporary staff, though, what coverage are they covered by the staffing agency or the business they’re working for?

Who Is Responsible for Insurance?

A business’s insurance covers the employees who work for the company. However, this is reserved for long-term or more permanent employment. In the case of temporary staff, the policies they’re covered under would be the staffing agency insurance. This is why a staffing agency requires its insurance program with employee-specific policies such as Worker’s Compensation, Employment Practices Liability and more.

This means, when running a temporary staffing agency, do not expect the businesses are hiring employees from you to be able to cover the expenses if something goes wrong. Be sure to find specific staffing agency insurance programs, because the responsibility will be all on you.