Business Insurance for Staffing Agencies

Business insurance can protect you from unexpected costs of running your business and potential catastrophes.

Both federal and state governments have insurance requirements for businesses. Laws vary by state, so visit your state’s website and consult with your attorney and/or licensed insurance professionals to ensure you have proper coverage.

In some instances, your client company or a managed service provider will require you to sign their agreement to supply contract employees. These agreements may include specific insurance requirements.  As you consider new contracts, work with your insurance agent or broker to ensure your ability to secure the necessary coverage.

Additionally, suppliers you work with such as your funding partner may require proof of insurance coverage such as General Liability and Worker’s Compensation.

Here are 5 tips for securing the business insurance you need!

#1.  Do your research to determine the types of insurance needed.  Search sites such as www.sba.gov, www.nfib.com, and your state website.  Often, it’s the Department of Secretary of State which outlines required insurance.

#2.  Find a reputable licensed agent/broker. Commercial insurance agents can help you find policies that match your business needs. They receive commissions from insurance companies when they sell policies, so it’s important to find a licensed agent that’s interested in your needs as much as his or her own.  If you have a relationship with a local agent, start there!

#3.  Your staffing industry network can provide you with guidance and suggestions related to your staffing business. Membership to the American Staffing Association or your local staffing and recruiting chapter is a valuable investment. The supplier member directory is a great place to search for vendors who have extensive knowledge and serve the staffing industry.

#4. Worker’s Compensation insurance can be challenging for new businesses to obtain. Check your state website for information related to the “assigned risk-pool” insurance.

#5.  Sometimes it’s who you know.  Scale Funding has served the staffing industry since 1994. Not only do we have seasoned sales and service teams that understand the industry, but we also have a staffing industry expert who prior to joining Scale Funding spent 15 years working directly in staffing.

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