From an insurance perspective, there is some additional employment risk when it comes to staffing firms, which can make getting an appropriate level of contract employee insurance difficult if you are working with more traditional insurance firms. Here are some important considerations when you are searching for the right policy.
Like any other business, you should have a minimum coverage that include general liability and E&O coverage, but you may need to have specific language in your policy that extends that coverage to employees wherever they work, since you will be sending them out to clients around your area, your state, your country, or even throughout the world. This can add risk and make good policies harder to find.
You will also need to consider workers compensation in your contract employee insurance policy to cover the people you are sending out to other agencies in case they get injured on the job. Again, this will need to have specific contingencies built in for employees who are off your traditional work site at other firms.
It may be helpful to ask other staffing agencies where they got their insurance, and what their contracts look like. This can provide a gauge for you to determine if you are underinsured and need more coverage, or help you identify ways to tailor your contract employee insurance policy to your specific business model.
When it comes to specialized insurance, going with a company that has provided coverage to other similar businesses may be helpful so you know you are getting someone with experience that matches your company’s needs.