Insurance for staffing agencies
IT staffing firms have to have the right insurance coverage in order to win new clients. Like the companies they represent, clients want their IT recruitment agencies to carry general liability insurance, professional liability insurance, workers compensation, and fidelity bond coverage.
General liability insurance for staffing agencies
Client companies often require all of their vendors from plumbers to IT staffing firms to show proof of general liability insurance. Any systems engineer you place on a job could accidentally damage hardware, drop a laptop, or spill soda on a server. When a client goes after one of IT contractors for compensation, you could be held responsible. IT staffing firms with the right liability insurance are protected from this risk.
Professional liability insurance
Professional liability insurance for IT recruitment agencies is like malpractice insurance for these firms and the information technology service providers they place. It protects your IT recruiting agency from liability arising from errors and omissions that you or your contractors may make on the job. For example, if your staffing firm places a systems analyst on a job, and that individual makes a mistake that wipes out millions of dollars worth of client data, your client can claim the error was your fault and expect you to compensate the company. Without liability insurance, IT staffing agencies could have to foot the bill.
Workers’ compensation insurance
Even if your state doesn’t require workers compensation, you should still have it. Why? Because you may work with clients in states that do require it. If your client is required to have it, they will likely require you to have it too even if it’s not a mandate in your state.
Workers’ compensation insurance covers medical costs as well as disability and compensation, should you or one of your employees get hurt on the job. If you’re a single IT consultant with your own health staffing insurance, workers’ compensation insurance may be repetitive, but you may still need it to get the work.
Fidelity bond coverage
This type of insurance compensates your IT staffing firm if one of your contractors steals money or property at an onsite client. If you place a dishonest individual, you are just as liable as they are if something goes wrong. If you recruit IT professionals in banking or finance, you need to be very careful given all the sensitive data they have access to.
