Staffing agencies are unique in many ways, and property insurance is often overlooked as a core insurance coverage. While your central business operates from an office, your workforce is frequently mobile and may be placed in higher-risk industries. Below are key property considerations for your exposure(s) as a temp staffing agency:
- Coverage for office space: Even if you operate from a small office, you’ll need coverage for physical assets such as office furniture, computers, and other equipment. Commercial property insurance protects these assets from damage or loss due to theft, fire, vandalism or natural disasters.
- Business interruption insurance: If an unforeseen event (like a fire or flood) forces your business to close temporarily, business interruption insurance can cover lost income and operating expenses during downtime. This is crucial for staffing agencies that rely on consistent client communication and operations to place workers.
- Equipment in transit (Inland marine insurance): If you transport equipment (laptops or recruitment materials) to job fairs, client meetings, or remote work locations, inland marine insurance covers property that is in transit or temporarily off-site.
- Tenant improvements & betterments: If you rent office space and have invested in improvements (such as new flooring, lighting, or built-in desks), these should be covered under the property policy. Tenant improvements insurance protects these investments in case of property damage.
- Off-premises coverage: While most staffing operations occur in the office, consider your temporary workers that are placed off-site. It’s important to ensure that your insurance policies extend to property damage or liability that might occur at your clients’ locations.
- Property owned at client sites: Temporary employees may use equipment or property provided by you (the staffing agency) at client locations. Coverage for your owned property used off-site ensures protection in case of damage or loss.
- Valuable papers and records coverage: Unless you’re completely paperless, you likely handle a significant amount of paperwork, from employee files to client contracts. Valuable papers insurance covers the cost of recreating lost documents due to fire, water damage, or other covered losses.
- Contingent business interruption: If a key vendor or client experiences a property loss that affects your operations, contingent business interruption insurance can cover lost income and additional expenses.
Not all property exposures are contemplated (and insured) via a commercial property policy. Below are other coverages to consider:
- Cyber liability insurance: As a staffing agency, you’re likely storing sensitive data online, including employee personal information, payroll details, and client contracts. Cyber liability insurance protects against data breaches, cyberattacks, and the associated costs of recovery, legal fees, and notification expenses.
- Crime and employee dishonesty coverage: Unfortunately, you may face exposure to theft, fraud, or dishonesty by employees, whether in-house or temporary workers placed at client sites. Crime insurance provides protection against financial losses from employee theft or fraud, including theft of property, money, or securities.
Ensuring that both on-site and off-site property risks are covered is essential for your financial protection and operational stability. If you have any questions, contact a Marsh McLennan Agency (MMA) advisor.
