Workers Compensation Biz

All about Instance for Staffing Companies


In order to be able to conduct your staffing business, there is a need to have adequate business insurance for your staffing company, and you should have this even before you send out your first temporary employee.  There is a need for staffing companies to purchase the basic workers compensation for staffing companies and General Liability Insurance.  On top of the basic insurances, it will also be useful for a company to buy a G/L policy that will include Professional Liability Coverage and Errors and Omissions (E & O) coverage.  Identifying an insurance company that truly understands the staffing industry is the biggest challenge a staffing company owner may face.


The important thing to securing the proper insurance for your business is finding someone who understands you business.  Underwriting an insurance policy for a staffing company has its own challenges since the company  can lose direct control over their employees when they are sent out to remote, third party client sites. It would be easier to assess the risks if these employees worked every day at your office location.  In an insurance company's perspective, there is greater risk for employees that work at client locations, which is the nature of the staffing industry.  Insurance take into  consideration that your employees may be asked to perform tasks at client locations that they don't do in-sire, and so they have a larger underwriting task. For more facts about workers compensation, visit this website at


Someone has said that it is like visiting a dentist to do the task of researching an insurance company, finding the right one and the right insurance policies to purchase, and actually purchasing the policy.  They are both necessary but they are not fun.  But, if you don't have insurance for your staffing business, you will not be able to operate your company.


One other concern is knowing how much insurance to purchase, and what types are right for your company.  Nobody wants to be over-insured, but you also don't want to be under-insured.  If you find the right insurance company that understands your business, you can ask them to recommend coverage amounts and types of policies.  You can ask your staffing clients or potential clients to send their standard staffing contract to you.  You client will likely have a section in their contract that covers insurance, and how much and what types you need to have in order to do business with them.


Always remember, that clients would want to deflect as much insurance risk on to you as possible.  They want to have no risk in having your employees work on-site at their location.  if the client asks for a high insurance coverage that you can't fulfill, either renegotiate the contract with the client or give up the client, and forgo the business. Learn about Work First Casualty Company here!