Your IT staffing firm needs to have the right insurance coverage in order to stay in business. This should include carrying general liability insurance, professional liability insurance, workers compensation, and fidelity bond coverage. These all fall under the standard requirements when purchasing staffing insurance for your business.
General liability for staffing agencies
A General Liability policy, for example, would come into play if a systems engineer placed on a job by your firm were to accidentally drop a piece of hardware owned by one of your client’s customers. You would be held responsible as his employer of record for the damage to damage caused by the contract employee while on assignment (care, custody and control).
Professional liability insurance for costly mistakes
Professional liability insurance for recruitment agencies is a type of errors and omissions coverage for the IT service providers they place. It protects you from liability arising from errors that you or your contractors may make on the job. For example, if your temp IT staffer makes a mistake while performing professional services that your client claims is potentially going to cost millions to recover (due to lost revenue, for example), the compensation to his company, without liability insurance, could cost you your business.
Workers’ compensation insurance is required
Workers compensation is very complicated area for staffing agencies and should be reviewed carefully by your agent to explain your responsibility in securing insurance for your employees. Workers’ compensation insurance covers medical costs as well as disability and compensation, should you or one of your employees get hurt on the job.
Fidelity bond coverage for theft and dishonesty
This coverage compensates your IT staffing firm if one of your contractors steals money or property from a client. By placing a dishonest individual, you become just as liable as they are if they do something wrong. Be extremely careful when recruiting IT professionals for banking or financial institutions and carry adequate amounts of staffing insurance for your various needs.