| IT staffing agencies are familiar with their clients’ | | | | Workers’ compensation insurance |
| requirements for insurance coverage, and know that | | | | Some states require companies to carry workers’ |
| they have to have the insurance to get the business. | | | | compensation insurance, while others don’t. If your |
| But you may wonder if all that coverage is really | | | | client’s company is based in a state that requires it, |
| necessary. The good news is that in almost all cases, | | | | your IT recruiting firm will probably be asked to carry it, |
| the insurance coverage your client requires can be | | | | even if your own home state does not mandate it. |
| both affordable and beneficial to your business. | | | | Why? In some states, your client will be forced to |
| Beyond finding a reputable insurance agency, staffing | | | | cover you with its own workers’ compensation |
| firms need to do their homework to reduce their liability | | | | policy if you or your employees get injured on the job. |
| in client dealings. Typically, clients want their IT | | | | Also, in some states, your client’s insurance carrier |
| recruitment agencies – as well as the information | | | | can bill your client for coverage for all subcontractors |
| technology subcontractors those companies hire on | | | | who don’t provide their own certificate of |
| their behalf – to carry some or all of the following | | | | coverage. Both result in higher premiums for your client. |
| four types of coverage: | | | | Workers’ compensation insurance covers medical |
| General liability insurance | | | | costs as well as disability and compensation, should |
| General liability insurance for IT staffing agencies | | | | you or one of your employees get hurt on the job. If |
| covers damage to property or injury to people. Client | | | | you’re a solo IT professional with your own health |
| companies often require all of their vendors – from | | | | staffing insurance, workers’ compensation |
| plumbers to IT staffing firms – to show proof of | | | | insurance may be redundant – but you may still |
| general liability insurance. In some cases, the mandate | | | | need it to get the work. |
| is driven by the client’s risk managers, who seek to | | | | If your IT recruitment agency does have employees, |
| reduce the company’s risk of financial loss due to | | | | protecting them with workers’ compensation |
| lawsuits. | | | | insurance is a smart thing to do. From carpal tunnel |
| Any systems integrator you place on a job could | | | | syndrome to a slick break room floor, any number of |
| accidentally damage hardware, cause a short or put a | | | | on-the-job hazards could jeopardize your |
| foot through a drop ceiling while pulling cable. Even a | | | | employees’ health or take them away from their |
| software developer, software engineer or | | | | jobs. Workers’ compensation coverage ensures |
| programmer working at home could accidentally spill a | | | | that your employees are taken care of and saves |
| drink on a laptop or drop a server in his or her | | | | your company any expenses arising from their |
| possession. | | | | ongoing care. |
| When a client goes after one of your information | | | | Working with a reputable insurance agency, IT staffing |
| technology subcontractors for compensation, | | | | firms can secure the right coverage to meet client and |
| you’re likely to be held responsible as well. IT | | | | state requirements. |
| staffing firms with liability insurance from a quality | | | | Fidelity bond coverage |
| insurance agency are protected from the financial | | | | Often described as employee dishonesty coverage, |
| fallout that could result. | | | | this type of insurance compensates your client if you |
| Professional liability insurance | | | | or your IT staffing firm’s employees steal money |
| Professional liability insurance for IT recruitment | | | | or property on the job. If your IT staffing firm places an |
| agencies is like malpractice insurance for these firms | | | | information technology service provider who turns out |
| and the information technology service providers they | | | | to be less than honest, you’re just as likely to be |
| place. Also known as E&O insurance, it protects | | | | held accountable as the person who does the deed. |
| your IT recruiting agency from liability arising from | | | | Clients in the banking and financial services industries |
| errors and omissions that you or your information | | | | typically want programmers, software engineers, |
| technology subcontractors may make on the job. | | | | software developers and system integrators to carry |
| Clients require it because they know that people make | | | | fidelity bond insurance from a reputable insurance |
| mistakes. | | | | agency because they’re entrusting them with |
| Your client’s greatest risk in hiring you is that your | | | | sensitive information, such as customer account |
| mistakes could spawn a lawsuit or financial loss. For | | | | numbers, and personal information, such as Social |
| example, if your staffing firm places an information | | | | Security numbers. |
| technology subcontractor on a job, and that individual | | | | If your staffing firm has information technology |
| makes a mistake that wipes out hundreds of | | | | subcontractors handling valuable property or customer |
| thousands of dollars worth of client data, your client | | | | information – even though you trust them – keep |
| can claim the error was your fault and expect you to | | | | in mind that anything could happen. Computer |
| compensate the company. Without liability insurance, IT | | | | equipment could disappear, or a programmer could |
| staffing agencies can expect costs to mount quickly. | | | | obtain banking customers’ account numbers and |
| Having professional liability insurance for IT staffing | | | | passwords to steal from their accounts. If that |
| agencies just makes sense. Without it, IT staffing firms | | | | happens, fidelity bond insurance for IT staffing firms |
| are liable for legal defense costs if their clients make | | | | compensates your client for the missing money or |
| claims against them and for settlement costs if a court | | | | property. |
| finds them at fault. A misunderstanding may be all it | | | | By contacting a quality insurance agency, IT |
| takes to get sued. Once a client alleges negligence and | | | | recruitment agencies can learn more about fidelity |
| communications break down, your legal expenses | | | | bond insurance and how much coverage is best. |
| begin to grow. | | | | |