Question 1

What is a common misconception about Workers' Compensation for Staffing Agencies?

Accepted Answer

Staffing firms think the host employer's WC covers placed workers. In most states, the staffing firm is the 'employer of record' and carries primary WC obligation.

Question 2

What happens if staffing agencies don't have Workers' Compensation?

Accepted Answer

A placed welder loses an eye from a flash burn at a manufacturing client. Staffing firm's WC pays statutorily. Skipping WC means business shutdown by state labor commissioner.

Question 3

What is a common misconception about Employment Practices Liability (EPLI) for Staffing Agencies?

Accepted Answer

Staffing firms think host employer's HR practices don't affect them. Joint-employer doctrine means both can be named in the same EEOC charge.

Question 4

What happens if staffing agencies don't have Employment Practices Liability (EPLI)?

Accepted Answer

A placed worker alleges sexual harassment by the host employer's supervisor. Both the host and the staffing firm are named. Staffing EPLI defends and pays its share.

Question 5

What is a common misconception about Professional Liability (E&O) for Staffing Agencies?

Accepted Answer

Staffing firms think their referral disclaimers protect them. Plaintiffs' counsel routinely successfully argues negligent placement.

Question 6

What happens if staffing agencies don't have Professional Liability (E&O)?

Accepted Answer

A placed accounting clerk — passed your background check despite a prior embezzlement — embezzles $80K from your client. Negligent-placement suit defense and settlement: $140K. E&O pays.

Question 7

What is a common misconception about General Liability for Staffing Agencies?

Accepted Answer

Staffing offices have client/candidate visitors constantly — premises exposure matters.

Question 8

What happens if staffing agencies don't have General Liability?

Accepted Answer

A candidate trips in the lobby — $14K medical. GL pays.

Question 9

What is a common misconception about Cyber Liability for Staffing Agencies?

Accepted Answer

Candidate databases hold extensive PII — full SSNs, prior employer info, addresses, often years of records. A breach affecting hundreds of candidates can cost millions.

Question 10

What happens if staffing agencies don't have Cyber Liability?

Accepted Answer

Phishing attack exposes candidate database — 14,000 records. Notification, credit monitoring, regulatory: $360K. Cyber pays.

Staffing Agencies Insurance Coverage Guide | RISKX