Many billions of dollars are lost annually in the United States through crime committed internally in companies. Crime is a large liability exposure for many businesses. Crime coverage may be considered an essential piece of any staffing agency insurance
profile. Insurance may protect against losses of money, securities or inventory through employee:
- Safe burglary
- Computer fraud
- Wire transfer fraud
Mind the Gaps
A client may have crime liability insurance in place, but a staffing agency should be aware of whether or not the clients policy covers crimes committed by a temporary employee. If the clients policy only covers losses that occur through theft by a permanent worker, the staffing agency may be held responsible. Without staffing agency insurance to protect against crime liability
, out-of-pocket costs may be financially damaging.
Practice Clear Communication
Making sure you are on the same page with your client may help to sort out responsibility later if a crime occurs. While a staffing agency may buy coverage that extends to some clients and their property, it may not have similar coverage that extends to all. One of the most efficient ways to keep things clear is to have a written contract with the client outlining party obligations. In lieu of a contract, the agency may openly state its policies. Either way, the best time to decide how to manage losses due to crime is before it occurs.