temporary staffing insurance

New Start-Ups Require Structure and Proper Coverage

A staffing company is essential in today’s business climate where employees often move from company to company. When a shortage occurs there’s a need of temporary employees to cover the position of a regular employee who has recently left or is unable to report for work. Staffing agencies aim to develop relationships with employers by placing qualified individuals into positions for that employer whenever a vacancy occurs. By helping to fill both short-term and long-term positions, or providing direct placement assistance for employers, they strengthen these blossoming relationships.


Starting a staffing company isn’t all that difficult, much like many other small businesses. In general, a staffing organization requires fewer licenses and needs only to address minimal requirements in order to proceed with licensing and permits. Though the licenses required are few in number, certain requirements must be met. In order to operate the business legally and be able to place applicants with clients operating their own businesses, having temporary staffing insurance is an important piece of the puzzle.


A temporary staffing agency must have a legal business structure in place. It’s advantageous for the company to have a corporate entity that protects the owners from legal liabilities that may result from any errors demonstrated by their placed employees while under the control of their temp employers.


Once the legal business structure is in place, you must register your operation with the state in which you’ll be conducting business. The registration process varies by state and requires the necessary registration fees. Upon completion, the state will provide your staffing company with a state tax identification number that must be referenced when paying the business’s taxes, including staff and employee withholding tax.


Having insurance coverage in place is key


As you well know, any business that provides temporary workers needs temporary staffing insurance that will help protect the company from any possible liability issues that may arise and to aid your company in meeting its legal requirements. Most staffing agencies start with a general liability insurance policy. You’ll also need workers’ comp, liability, employment practices and a slew of other coverages to protect you and your staff members from an array of exposures.