How Small Business Insurance Can Help Your IT Staffing Firm
IT staffing and placement business insurance can help your firm out of several tricky situations. Let's take a look at some of the issues you might face while fulfilling your clients' staffing needs.
- Coverage for workers. If the IT professionals you place need insurance to meet contractual requirements, TechInsurance can help. Contact Marina for information about our referral program so you can earn a little extra while helping workers secure coverage quickly.
- Slander lawsuit. Your client says a contractor you placed at their company doesn't have the skills she claimed and that her code is riddled with mistakes. You apologize to the client and drop the contractor from your roster. Six months later, she sues you, claiming you damaged her professional reputation and she is unable to find work. Luckily, you have General Liability Insurance to help pay for legal expenses.
- Errors and Omissions lawsuit. Let's say the contractor's mistakes caused your client to miss the deadline for a product launch. Your client sues you over the $50,000 they lost in business. If you have an Errors & Omissions Insurance policy, it can help to cover the lawsuit.
- Water damage. During an especially windy rainstorm, a tree branch breaks through an office window. Enough rain gets in to destroy five MacBook Air computers you just bought. Good thing a Business Owner's Policy can help you replace your MacBooks.
- Employee injury. The contractors you place aren't technically your employees. However, you could still be responsible for their medical bills if they get injured, depending on the laws in your state and the contracts with your clients. Let's say you book Tony at a new financial technology startup, and while running down the stairs to fix a server issue, he falls and breaks his leg. Workers' Compensation Insurance can help cover the medical expenses. The policy also usually includes Employer's Liability Insurance, which can help out when these injuries turn into lawsuits.
- Assignment at a local bank. It's common practice for clients in the financial services industry to ask you to purchase a Fidelity Bond (also called an Employee Dishonesty Bond). This protects your client in case one of your employees tries to steal from them or commit fraud.
- Discrimination lawsuit. Let's say a major Fortune-500 company hands your company a plum assignment. Your contractors are clamoring for the available positions, including Bill, a less-than-stellar contractor who received mediocre reviews from past clients. You pass him over in favor of more reliable contractors, and Bill sues you over discrimination. Situations like these are why many IT staffing firms carry Employment Practices Liability Insurance.
Free IT Risk Management Resources for Employment Agencies and Staffing Firms
Whether you run a small IT staffing firm or an international company that recruits H-1B foreign workers, it's smart to have a plan to prevent tricky situations before they happen.
In addition to helping you manage your liabilities with IT staffing business insurance, TechInsurance offers free risk management resources. Check out our blog full of helpful advice, free sample insurance quotes for IT firms, answers to frequently asked business insurance questions (FAQs), and more tech business resources.