Staffing agencies usually need workers’ compensation, general liability, employment practices liability, professional liability and often crime coverage with client protection. Client agreements set limits, additional insured status, waivers and sometimes alternate employer endorsements. Workers’ comp is usually the largest cost and depends on correct class codes by placement. SF Coverage offers a free workers’ comp audit review and checks each client agreement against your current policies.
Who sets your insurance requirements
- Client companies
- Workers’ compensation with alternate employer wording, general liability with additional insured status, waiver of subrogation and sometimes crime coverage for client property.
- Hospitals and healthcare facilities
- Professional liability for placed clinicians, higher limits and credential documentation alongside the certificate.
- Managed service providers and vendor management systems
- Annual certificate uploads with exact limits and endorsement copies before you can fill orders.
- Government and school clients
- Public contract insurance sections with specific limits, waivers and notice wording.
Coverage staffing agencies usually carry
Exposures to get right
Workers’ comp classification
Each placement type carries a different rate. Misclassified payroll is a common source of large audit bills.
Shared employer liability
California makes client employers share responsibility for wage and workers’ comp failures, so clients check your coverage closely.
Client site incidents
Placed workers can damage client property, injure others or be injured by client equipment.
Employment claims
High volume hiring, terminations and harassment at client sites produce employment practices claims.
In California
- Under California Labor Code section 2810.3, client employers share liability with the labor contractor for wages and for failure to secure valid workers’ compensation coverage for supplied workers.
- Cal/OSHA treats the staffing agency and the host employer as dual employers, and both have safety responsibilities for placed workers.
- California law requires workers’ compensation for all employees, and insurers audit the payroll each year by class code.
How SF Coverage works for staffing agencies
Have these ready
- Payroll by placement type and class code for the past year
- List of major clients and the work your placed staff perform
- Client services agreements with their insurance sections
- Your last workers’ comp audit worksheet and experience modification
- Hiring, screening and safety procedures
- Current policies and five years of loss runs
Insurance for staffing agencies, answered
Why do clients ask for an alternate employer endorsement?
Clients want your workers’ compensation policy to protect them if a placed worker is injured on their site and claims the client is also an employer. The alternate employer endorsement extends that protection to named clients. SF Coverage checks whether your policy has it and which clients each contract says must be named. When it is missing, SF Coverage requests it from the insurer and follows up until it is issued.
How can a staffing agency reduce workers’ comp audit surprises?
Keep payroll split by placement type, match each type to the right class code and update the insurer when your mix of clients changes during the year. Large swings between clerical and industrial placements are a common cause of surprise bills. We review your audit worksheet against payroll for free and help prepare a dispute where the records support it.
Does general liability cover my workers at client sites?
It covers your liability for injuries to others and property damage arising from your operations, within the policy terms. It does not cover injuries to your own workers, which is workers’ compensation, or professional errors in placement. Some policies limit coverage for certain placement types. We read your forms against the work your placed staff actually do.
Do I need crime insurance for my clients?
Some client agreements require coverage for theft by placed workers from the client, called third party or client coverage. A standard crime policy often covers only your own losses. If your contracts promise client protection, the policy needs the right endorsement. We flag every agreement that asks for it and show whether your current form meets the requirement.
Can you keep up with vendor management system uploads?
The free SF Coverage workspace keeps a register of every client, what each contract promised and the certificates and endorsements supplied, so you can see which uploads lapse at renewal. Certificates go out the same business day when the policy supports the request, and missing endorsements are followed up every two business days.
General information. Coverage depends on the policy an insurer issues.