Today’s labor force is always raising concerns about equality and benefits. Companies strive to give their positions a competitive advantage, and so often these incentives include employee benefits. Whether fortunate or not, some companies are forced to rely on temporary staffing agencies for assistance and don’t need to be preoccupied with attractive benefits for a large portion of their staff. Instead, they should be concerned with the staffing agency’s commitment to providing employee liability coverage.

Responsible Parties

Although they may not be on-site to directly observe and address employee activities, the law generally holds the hiring agency liable in situations that involve their employees. While some are starting to view temporary staff as more of contract position given the length of a position contract and dependence on a site-specific company for training and supervision, current findings require an employment agency to assume the financial and legal responsibility in addressing work-related accident, employee theft, property damage and scenarios of discrimination.

A staffing agency should take due diligence to acquire a policy that addresses areas of employee liability.

Policy coverage could include:

  • Commercial general liability
  • Employee theft or crime
  • Employment practices liability
  • Errors and Omissions coverage (professional liability)
  • Workers Compensation coverage

If a staffing company maintains the right insurance coverage, there will be less chaos if a claim is filed by a contracted company or temporary employee.