Uber, Grubhub, and Instacart have become revolutionary platforms for efficiently connecting with audiences. This has prompted staffing agencies to embrace similar platforms and transform how agencies connect with their temporary workers. However, as these platforms become more popular, it is crucial for staffing agencies to carefully consider the following coverage implications.
Cyber Issues
Cyber insurance is designed to provide coverage in case there is a breach of privacy or network security that involves your employees’ private information, such as their names, social security numbers, driver’s license numbers, internet browsing history, healthcare data, and more.
Business Interruption coverage would cover the costs that are reasonable and necessary to get the platform back online if the system goes down, as well as any business expenses such as lost net income and normal operating expenses like payroll.
Trade Secrets
Staffing crime insurance policies have a unique feature called Theft of Trade Secrets coverage. This coverage applies in a situation where an employee leaves the agency and joins another agency, taking their client and/or employee list with them, resulting in a loss of income for their previous agency. In the case of online platforms, instead of taking the client list, they would be taking proprietary information related to the platform, which triggers a theft of technology claim.
Independent Contractors
Occupational Accident Insurance (OAI) is an alternative coverage for work-related injuries by independent contractors who do not qualify for workers’ compensation benefits. OAI policies provide coverage for medical expenses, disability benefits, and accidental death and dismemberment. This ensures that independent contractors have appropriate coverage in case of any work-related incidents. It is crucial to ensure that your insurance policies include coverage for independent contractors, as they may not be automatically included in the definition of an employee.
Ensure your insurance policies cover these scenarios if you have or are planning on utilizing an online staffing communications platform. You do not want to have an uncovered claim that could have been avoided. For more information or assistance, please contact a member of our MMA team.
