Employment Agency Insurance
The company with the job opening compensates the employment agency once they hire the right candidate. A contract is signed outlining who is responsible for paying the employee and who covers their worker’s compensation.
The agency contracts workers for both short-term contracts as well as permanent positions. In instances where the agency does the screening, they select the best candidate and offer guidance on how to go about the interview. It is because it is in the agency’s best interest for the candidate to get the job and maintain an impeccable reputation.
This kind of business carries risks and hazards that can create massive losses to the company. Getting the right insurance protects your business from lawsuits.
Cost of Employment Agency Insurance
The standard cost of general liability insurance for an employment agency depends on the location, positions staffed by the agency, revenue, and experience.
Why Employment Agencies need Insurance
Like any other business, an employment agency has to carry specific policies to safeguard the business. There are risks associated with employment agencies which include
- Damage to business property
- Accidents to third parties and workers
- Lawsuits to your agency
Types of Insurances policies for an Employment Agency
Some of the policies include
Commercial Property Insurance
This type of policy protects your business property and the contents inside used for business operations. The insurance comes with business interruption coverage. It protects your business by covering the loss of income caused by the damage during repairs to the property.
Commercial General Liability Insurance
The policy covers for damage you may cause to property and third-party injuries. It covers the medical care that is needed and the cost of repairs to the damaged property.
Professional Liability Insurance
Also known as errors and omissions (E&O), the insurance covers lawsuits brought by negligence caused by your business. Clients sue for alleged and actual errors, omissions, and breaches of work.
It is then your job as an employment agency to get the right candidate for your client. Failure to hold your end of the bargain can lead to a lawsuit.
Workers Compensation
Protecting your staff is essential hence this insurance is mandatory in most states. The policy covers your staff in the event they are injured while at work. It covers the medical bills and the wages lost during the treatment.
Commercial Auto Insurance
Keep vehicles used in your business covered with a commercial auto policy. It covers damages caused to the vehicle and third parties.
Cyber Liability Insurance
An employment agency handles job seeker’s personal information. Protecting the data is crucial. However, a breach can occur, and you can be cyber attacked. The policy covers the costs and the damage caused to your business.
Protect your business from any possible hazard by getting the right insurance that protects your staff, clients, and the business.