Staffing agencies have a variety of obligations and needs that give them a unique insurance footprint. When you take out a D & O policy, it’s worth considering whether or not you need to add coverage for fiduciary liability. At www.wwspi.com/ you will find a cogent analysis of exactly what this extra coverage brings to staffing companies, as well as the circumstances that make it an important coverage area to address. Not every company has exposure to fiduciary liability, but staffing agencies are entrusted with the management of employee benefits, sometimes for companies that outsource their benefits management as well as their own. That exposes them in ways that some other businesses don’t face.
Mistakes With Employee Benefits Can Be Costly
Even when you hire the best people you can find and operate in good faith, sometimes mistakes happen. In cases where fiduciary liability insurance comes into play, typically the employee benefits have been mishandled in a way that negatively impacts the financial health of their plans. When that happens, the impact on the firm managing those benefits can be profound, and robust protection can provide the protection needed to weather the incident. Since you can’t guarantee good faith by everyone in your organization at all times, you need to guarantee you are protected from an incident that hurts your employees, so you can make things right and move on.