Staffing agencies face unique exposures related to employment issues. These companies must have Employment Practices Liability Insurance to protect against employment-related claims. It is vital to protect temporary staff with EPLI coverage.
Staffing Industry and EPLI
Businesses that provide temporary workers face different challenges and risks due to employees’ placement in other locations. Staffing companies employ the workers but do not have direct control over their situations once placed in temporary jobs. Therefore, when employment-related incidents occur, both the staffing agency and the client company are responsible. Typically, an employee sues both entities jointly. EPLI protects against potential risks.
EPLI policies help mitigate the costs associated with legal suits brought against the staffing company. This type of insurance safeguards against most lawsuits related to employment circumstances, such as:
- Wrongful termination
- Sexual harassment
- Failure to promote
- Deprivation of career advancement
- Wrongful discipline
- Negligent evaluation
- Invasion of privacy
Protect Temporary Staff With EPLI
Employment law is complex. Staffing agencies are vulnerable to lawsuits, regardless of where the incident occurred. Even when claims do not have sufficient grounds, it is expensive to pay for lawsuits’ legal defense. EPLI helps pay for the legal costs and also any resulting claim damages.
Legal claims can be costly. When temporary workers bring legal claims against a staffing agency, the company needs to have adequate insurance protection to avoid financial loss.