Staffing agency insurance, also referred to as business protection plans are a set of policies that are designed to protect a business and its assets. Each business protection plan covers different types of risks. The risks that are covered depend on the type of coverage that is purchased.
At a minimum, IT staffing agencies must have General liability insurance to cover property damage and personal injury. To protect your business with the best protection plans, it is critical that you compare offers, determine the type of coverage needed, and check into any additional benefits that are available.
Determine the Type of Coverage Needed
The first thing you must do before you purchase a business protection plan is to determine the type of coverage you need. The type of coverage that you will need to purchase depends on the industry in which your company is based. For instance, if you own an IT staffing firm that provides Temporary workers that fill various IT positions, then you will want to procure a temporary staffing insurance plan that will cover the risks associated with this type of company.
Common coverage types for IT staffing firms include
- Professional liability insurance: This type of insurance protects your staffing firm if lawsuits are filed concerning your professional services. For example, if one of your clients accuses you of sending the wrong candidate and states that this candidate has cost their company money, professional liability insurance will provide compensation for these damages. If legal fees are incurred because of such an accusation, professional liability insurance will cover these as well.
- Cyber liability insurance: This type of insurance provides coverage if your staffing firm becomes tangled in cyber-attacks or data breaches. This can easily happen because of mishaps on the parts of employees such as responding to phishing emails or being careless with handling sensitive data. All IT staffing firms must have cyber liability insurance because research states that approximately 90% of cyber-attacks are caused by careless behavior.
- Electronic data process and coverage: This type of coverage helps to pay for the restoration of data in the event it is lost or corrupted due to theft, malware, or vandalism. Depending on how the policy is written, you can also procure coverage for damage to software and hardware. For optimal protection, it is highly recommended to make sure your policy is written to provide coverage for hardware and software because trying to repair and replace these assets can be extremely costly.
Always Compare Offers
You may be tempted to purchase the first business protection plan that you see. You may reason that you Do not need to waste time comparing offers because you have found a business protection plan that works for you. Even though you have found a business protection plan that looks appealing, it is always best to compare offers because you want to make certain you obtain the most comprehensive coverage available for the best possible price.
When you are comparing offers, you must look for the following
- The deductible that must be met before coverage kicks in
- The cost of monthly premiums
- The types of risk that are covered
- Whether some benefits can be bundled into a package for cost savings
- Their claims process
Each plan will have different terms, so it is critical that you read over everything carefully before making any final decisions.
Attending staffing conferences in 2022 can be an excellent resource for determining how your business can benefit from collaboration with staffing agencies. At these conferences, you can network with other professionals to learn more about their staffing insurance solutions that you can also implement into your business. According to Techservealliance.org, these conferences also provide seminars to help you learn more about
- Succeeding in a Work-from-Anywhere-Sell-to-Anywhere-World
- Leadership and Culture
- Building and Retaining a High Performing Staffing Team
- The Staffing Firm Tech Stack
Check for Any Additional Benefits
Finally, you want to talk to an agent to see if there are any additional benefits available that can be offered to provide your company with the greatest level of protection. Insurance agents who are familiar with staffing agency insurance will be the best ones to consult because they understand the risks that staffing firms face and thus will be in the best position to advise you of any additional benefits you may need.
Obtaining a business protection plan for your staffing firm can be difficult because you must place temporary workers in multiple areas, so you must make sure you also have insurance in these locations. If you follow the steps outlined above, you will be able to find a business protection plan that will provide the necessary coverage to keep your business and its assets safe.