Staffing agency insurance in North Carolina

What insurance does a NC staffing agency need?

Core coverages include: workers comp for placed workers (the agency is typically the employer of record); employment practices liability (EPLI, covering discrimination, wrongful termination, and harassment claims in the hiring and placement process); professional liability (covering claims from placement errors); GL; and commercial property. The workers comp program is often the largest cost in a staffing agency's insurance program.

What workers comp obligations do NC staffing agencies have?

Staffing agencies are typically the employer of record for placed workers, making them responsible for workers comp coverage for those workers. NC requires workers comp for employers with 3 or more employees. The workers comp classification and rate depends on the type of work placed workers perform, light industrial, clerical, professional, etc.

What is EPLI for NC staffing agencies?

Employment practices liability (EPLI) covers claims arising from employment decisions, discrimination in hiring (race, sex, age, disability), wrongful termination, sexual harassment, and failure to hire. Staffing agencies are particularly exposed because the volume of hiring decisions they make creates elevated EPLI risk. Both the agency and, potentially, the client business can be named in EPLI claims.

What professional liability do NC staffing agencies need?

Staffing agency professional liability covers claims arising from placement services, placing an unqualified worker who causes harm at the client site, a background check error, a skills misrepresentation, or a failure to fill a critical position. These are service errors that standard GL does not cover.