Business models in the staffing industry have never been truly simple, but modern commerce, regulatory issues, and innovations have complicated the landscape even more. Co-employment relationships are now common, so that puts both clients and staffing firms on the hook to ensure they conduct fair practices in dealing with temporary workers. Even with the most dedicated management and adherence to legal and ethical guidelines, problems can still occur. That’s why employment practices liability coverage should be a critical component of your temporary staffing insurance package.
Why You Need Employment Practices Liability Insurance
In the United States, standards set down by the National Labor Relations Board have created situations in which contractor workers can be considered jointly employed by both their “actual” employer and the contracting employer. While the staffing firm oversees hiring, compensation, and benefits, their behavior and quality of work produced is governed by the client. Depending on the situation, both the staffing firm and the client may be subject to certain types of employment-based claims:
- Sexual harassment
- Wrongful termination
Protect Both Your Firm and Its Clients
Your staffing firm not only benefits from protecting its own interests, but it also has a duty to safeguard those of its clientele. The intricate nature of employer-employee relations in a staffing environment makes employment practices liability coverage a necessity. Your broker can analyze your company’s risk picture and recommend the best products for your temporary staffing insurance package.