While many customers turn to staffing agencies to find suitable employment placement, others take advantage of the services offered. Crimes such as employee theft and misappropriation of funds have become increasingly prevalent, forcing agencies to re-evaluate both their market risks and insurance coverages. Thankfully, there are now countless policies that help mitigate these risks, and understanding the importance of each is step one toward protecting your agency from disaster.
1. Defense and Legal Liability
Perhaps the most important crime insurance coverage to prevent misconduct is Defense and Legal Liability, which covers the cost of any legal measures that your company must take in order to fight or instigate necessary lawsuits.
2. Security Breach Expense Coverage
As with all industries, improvements in technology and technological education have increased the frequency and likelihood of serious security breaches within staffing agencies. Coverage affords companies the funds to cope with and respond to the breach efficiently, regardless of whether the breach occurred in-house or from an outside party.
3. First and Third Party Coverages
Several policies address both first and third party liability. For example, Coverage for Trade Secrets and Coverage for Dishonest Acts can help protect staffing agencies from not only employees but also customers who engage in illegal or otherwise damaging behaviors.
No matter the industry, the necessity of crime coverage will continue to grow as employees and customers find increasingly creative ways to take advantage of available funds and services. While you may not be able to prevent these instances entirely, having adequate insurance coverage can keep them from destroying the agency youve built.