Many companies employ temporary labor to help meet demands while keeping their labor costs down. For agencies who provide these services, potential employees are often carefully screened for experience and fit. In spite of a rigorous vetting process, the hiring agency should invest in temporary staffing insurance. Employee actions or inactions can create problems at the host employer’s job site, leaving the temp agency potentially holding the bag on liability.
Possible Reasons for Needing Coverage
An employee’s actions cause a financial loss due to falsified experience claims on their employment application.
An employee operating a forklift causes an accident and both himself and the host client’s property.
An employee is texting while driving while considered on-the-clock for the host employer and completing a job-related duty.
An employee’s negligence creates some type of loss for the host company.
Temporary staffing insurance policies will vary in both covered incidents and incident limits. Most companies working with the temp agency will require a certain amount of coverage. While it is impossible to eliminate accidents completely, having a sound policy in place for hiring applicants, skills training and assessment, compliance to all OSHA standards and working closely with the host employer to assess risks are a few of the ways a temporary staffing agency can minimize accidents with their employees.