Staffing agencies have a unique set of risks, especially in the world of professional liability. Even with the most stringent of screening methods, it is still very possible that your IT staffing agency can place an incompetent worker in a very important slot and when that happens, lawsuits are inevitable. Not that anyone ever wants to be sued, especially for negligence, but having the proper insurance policy can take some of the worry out of placing employees with IT firms.
Aside from the usual small business insurance coverage your IT staffing firm already has in place, it is important that your company carry a professional liability insurance policy. This policy will help cover any legal fees incurred by potential lawsuits brought against your staffing firm. With this policy in place, you as the owner of the staffing agency, can rest a little easier knowing that you won’t be financially responsible for every line of code your employees write or infrastructure they install.
Don’t mistake this policy as an excuse to go lax on your quality control, however. Although professional liability insurance is worth it in the long run, your premiums could get expensive unless you properly manage your company’s risks. Conducting standard procedures like background checks, following up with your employees’ references, and conducting periodic reviews of your staffing company’s projects will help lower your risks and eventually your insurance premiums.
Doing business is difficult enough without having to worry about what your agency’s employees are up to at all times. Give yourself one less item to worry about and speak to your insurance agent about a professional liability insurance quote for your staffing agency. It is one bit of insurance coverage that IT staffing firms should never be without.
Jim Cochran is the owner of TechInsurance, an online resource for IT Staffing insurance quotes. For years, Jim has helped IT Staffing companies get the business insurance they need to operate legally.