Temporary staffing agencies face unique challenges in managing employment-related risks. With employees working across various client sites and industries, the likelihood of encountering claims related to wrongful termination, discrimination, and harassment increases. Employment Practices Liability Insurance (EPLI) is essential for protecting both staffing firms and their clients from these costly and complex claims.
Why EPLI matters for staffing agencies
As a staffing agency, you’re not just managing internal employees—you’re also responsible for temporary staff placed at client locations. This dual responsibility increases exposure to employment-related claims, which can arise from:
- Wrongful termination or discipline
- Discrimination (based on age, race, gender, or disability)
- Sexual harassment
- Defamation, invasion of privacy, or other workplace-related issues
Without EPLI coverage, defending against such claims can drain financial resources and damage your agency’s reputation. EPLI ensures you and your clients are protected, covering legal fees, settlements, and judgments.
Key considerations for temporary staffing agencies
To ensure comprehensive protection, keep the following in mind:
- Policy coverage: Verify that your EPLI policy accounts for claims arising from both internal employees and temporary staff placed with clients.
- Proactive risk management: Help clients reduce their risk by promoting clear workplace policies, anti-harassment training, and proper onboarding procedures for temporary staff.
- Claims-made basis: EPLI policies are typically claims-made, meaning incidents must be reported within the policy period. Keep clear documentation and track reporting deadlines.
Protecting the future of your agency
EPLI isn’t just a safety net—it’s a selling point. Clients want to work with staffing partners that prioritize compliance and risk management. By carrying strong EPLI coverage and educating clients about its benefits, you build trust and differentiate your agency in a competitive marketplace.
Contact an MMA representative to learn more about these processes and additional risk management solutions.
