Misconceptions About Insuring Staffing Agencies
As an industry, temporary staffing can no longer be considered a newcomer. It’s unique business model has led to some confusing and costly gaps in insurance coverage. The industry has been around for almost half a decade yet there are some misconceptions about insuring the industry that still persist.
Traditional Coverage Is Enough
Because employees of a staffing agency many times work on assignment and traditional insurance policies do not offer coverage for claims off site, under another business’ supervision, specialized temporary staffing insurance is necessary. It provides extended coverage that protects against the risks associated with the industry and lowers the chance of staffing agencies having to pay for claims out of pocket.
Covering a Temporary Staffing Agency Is Too Expensive
Staffing agencies have found a renewed surge in applicants due to the recent recession. However, the growth in the industry has not been reflected in insurance companies that offer temporary staffing insurance. There is an ambiguity in the industry that has often led to carriers and insurance agencies to avoid insuring the industry as a whole. The truth is, there are a broad range of conditions that effect the risks involved with temporary staffing. However, there are policies that do provide appropriate coverage and remain affordable.
The staffing industry continues to be a dynamic workplace. Insurance policies must adapt and provide policies that are flexible to their needs.