3 Businesses Tips from Someone With Experience

All about Instance for Staffing Companies Staffing companies can operate their business only after they have purchased adequate business insurance even before they operate on their business and send out their first employees. The Worker’s Compensation and General Liability Insurance is the basic insurance that every staffing company has to purchase. It will also be a good idea to consider buying a G/L policy that will include Professional Liability Coverage and Errors and Omissions (E & O) coverage, on top of the basic insurances. Identifying an insurance company that truly understands the staffing industry is the biggest challenge a staffing company owner may face. Working with someone who understands you business will help you secure proper insurances for your business. When a staffing company sends out temporary or contract employees to remote, third party client sites, the business owner can lose direct control over these employees, and this is the reason why underwriting an insurance policy for a staffing company is quite challenging. The risks are easier to assess if these employees simply worked for you at your location. In an insurance company’s perspective, there is greater risk for employees that work at client locations, which is the nature of the staffing industry. The underwriting task is larger for an insurance company since they consider that your employees may be asked to perform tasks at a client location that you may not otherwise ask them to perform if they were on-site at your office. Someone has said that it is like visiting a dentist to do the task of researching an insurance company, finding the right one and the right insurance policies to purchase, and actually purchasing the policy. Both are necessary but not fun. However, you company cannot operate if it does not have insurance for it.
Looking On The Bright Side of Businesses
The staffing business also needs to deal with how much insurance to purchase, and what types are right for the company. The company should neither be over-insured, nor under-insured. The right insurance company will recommend that amount of insurance and the types of policies to purchase for your company. You can ask your staffing clients or potential clients to send their standard staffing contract to you. Usually, these staffing contracts contain provision on the amount and type of insurance you need in order to do business with them.
Looking On The Bright Side of Businesses
You should always remember that when it comes to risks, you client would want to deflect it on you as much as possible. They want to have no risk in having your employees work on-site at their location. You should consider trying to renegotiate the contract, or forgo the business is a potential client asks for more insurance coverage than you are able to pay premiums for.