How employment works, employment agency insurance coverage
Generally speaking, there is no single business insurance policy for all businesses. Every industry and every niche in an industry has its own pitfalls. That is why insurance companies offer plans corresponding to the individual risk exposure faced by each company.
For those involved in locating jobs and employees that fit a company’s wanted ad, there are many risks. The summaries below describe what each agency does and why specialized coverage is so necessary.
Errors and Omissions Insurance Coverage for Employment Agency
Employment agencies and their counselors generally operate in large urban centers. They benefit both the employer and the employee by facilitating job placement.
An employment agency typically matches employees with companies for the following positions:
• Main administrators
• Secretaries
• Administrative workers
• Other office workers
Although most employment agencies provide assistance broadly, others find jobs and employees in specialized industries. The specialized agency is involved in the placement of qualified and unqualified personnel in companies.
Both the general and specialized employment agency and their advisors face wide exposure to errors and omissions if a referred employee does not perform according to specifications. If held responsible for the misrepresentation, the employment agency may face a charge of negligence, error or omission. In addition, the employment agency can be sued if it slanders a candidate.
Temporary Employment Service Agency Insurance Coverage
Unlike a general employment agency, a temporary service agency provides temporary employees for business offices, engineering businesses, light manufacturing operations, and services. Temporary employee service is important for organizations facing high spikes. The service is also used in case temporary help is needed to replace employees on vacation or leave. Associated coverage may consist of:
• Professional responsibility
• Responsibility in case of damages due to activities of the temporary worker
• Workers’ compensation involving the temporary worker
Employee Staffing Services Insurance
Staffing services are different from the above. The staffing service provides employees for businesses on a contract basis. The employee recruitment service is in charge of workers’ wages, benefits, workers’ compensation, and other job-related human resource matters. Insurance may include:
• General and professional liability
• Third Party Loyalty Coverage
• Liability for employee practices
• Workers Compensation
For more information about general and specialized employment service and temporary employment insurance, as well as insurance coverage for an employee recruitment service, contact an experienced independent insurance agency.
