Every company should be protected against employment practices liability claims. But, staffing agencies face more complex risks and challenges than some other businesses. The work environment is increasingly litigious, and staffing agencies have limited control over the culture where their employees are placed. Your company could be held accountable for another organizations failure to provide proper management in this sensitive area.
The most common types of employment practices liability claims are sexual harassment, wrongful termination, retaliation and discrimination. Other types of claims that you should be aware of include defamation, failure to promote, invasion of privacy and negligent evaluation.
Without insurance protection, your business could pay dearly. Out of court settlements can range from $75,000 to over $200,000 and litigation can take many months. In spite of these numbers, 7 out of 10 businesses do not carry this insurance.
Staffing Agencies Are Responsible
Staffing agencies are responsible for the wellbeing of part-time and temporary staff. However, the standards are unclear on where accountability begins and ends. Employees may be viewed as working for both the agency and the agencys clients. Your insurance should be tailored to address this ambiguity. These are some issues to be aware of.
Coverage should include both your companys employees and the part-time and temporary people you place.
Coverage should extend to pay defense or damages for a client even though this is not part of their contract.
A firm that specializes in employment practices liability coverage for staffing agencies can help you select coverage that is appropriate for your company.