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How Employment Practices Liability Insurance Can Protect Staffing Service Businesses

It is impossible for staffing services businesses to predict whether or not an employee will bring an allegation against them for things like wrongful termination, discrimination and sexual harassment. Even the most careful and well-meaning employers could be falsely accused by an employee or put into a bad situation by the actions of a manager or other high-ranking employee. To protect themselves in such situations, it is important for businesses of all sizes and types to have employment practices liability insurance coverage.

Staffing Firm Risks

Staffing firms are open to unique lawsuit risks because they are responsible for many different contracted (temporary) employees that are placed with a wide variety of clients. The staffing firms may have very little knowledge of what temporary employees are doing in other business settings, but they may still be held accountable for the actions of those employees. Employment practices liability insurance provides valuable coverage against many different claims, including:

  • Breach of contract
  • Discrimination in all of its forms
  • Harassment
  • Wrongful termination

Small staffing firms may be especially susceptible to lawsuits because they may not have a well-established legal department or clear policies and procedures guide to help protect them from unwanted legal situations.

Protection Is Imperative

In order for large and small staffing services companies to keep themselves from facing serious financial repercussions due to lawsuits, it is imperative to have an employment practices liability policy in place at all times.

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