If you own an agency which hires out temporary employees to clients, you may already understand the complications that arise from overseeing an employee who has two separate employers. While the contracting employer who works as your client is in control of the specific job your staff is seeing to, your business acts as the ultimate guide and source of benefits. Due to this, while your clients may be supervising your employees, you are the one in control of coverage for insurance. Anyone looking to hire temporary staff is going to want to see that the company they’re hiring from has policies such as employment practices liability for the staffing agency.
Employment Practices Liability Insurance
Temporary staffing firms may find themselves in trouble if one of their employees or a client of theirs files a claim for wrongful acts in employment situations, such as but not limited to:
- Wrongful termination
- Failure to promote
- Sexual harassment
With the sometimes chaotic and frequently changing employment situations involved in a temporary staffing agency, employment practices liability can help protect the firm itself from plausible risks while hiring out employees. Having this type of insurance also is a positive sign to potential clients, adding a layer of security for both them and your business.