Staffing & Temp Agencies Insurance

Coverage recommendations, carrier options, and cost estimates for insuring staffing & temp agencies businesses. Built for independent agents quoting this class.

NAICS: 561320·Also known as: temp agency, staffing firm, employment agency

Recommended Coverages

GL

essential

Third-party bodily injury, property damage, personal and advertising injury arising from business operations. Common claims include placed employee injury at client site. Agent note: Negligent hiring E&O exposure requires thorough screening documentation

Typical Limits

$1M per occurrence / $2M aggregate

Premium Range

$400 - $3,000/year for small businesses; $3,000 - $15,000+ for contractors and higher-risk classes

Workers Comp

essential

Medical expenses, lost wages, rehabilitation costs, and death benefits for employees injured on the job. For Staffing & Temp Agencies businesses, key exposures include workers comp for placed employees. Common claims include placed employee injury at client site. Agent note: Workers comp is the dominant cost — premium based on payroll of ALL placed workers

Typical Limits

Statutory limits per state law; Employers Liability typically $500K/$500K/$500K

Premium Range

Based on payroll × class code rate × experience mod. Ranges from $0.50 to $30+ per $100 of payroll depending on classification

Professional Liability (E&O)

recommended

Claims arising from professional errors, omissions, negligent acts, or failure to perform professional duties. For Staffing & Temp Agencies businesses, key exposures include co-employment liability. Common claims include wage and hour dispute.

Typical Limits

$1M per claim / $2M aggregate is standard; higher limits for regulated professions

Premium Range

$500 - $3,000/year for low-risk professions; $3,000 - $20,000+ for attorneys, accountants, and healthcare

EPLI

recommended

Claims by employees alleging wrongful termination, discrimination, sexual harassment, retaliation, failure to promote, and other employment-related violations. For Staffing & Temp Agencies businesses, key exposures include workers comp for placed employees.

Typical Limits

$500K - $2M per claim / aggregate

Premium Range

$800 - $3,000/year for small businesses (under 25 employees); $3,000 - $15,000+ for larger employers

Cyber Liability

situational

Data breach notification costs, forensic investigation, credit monitoring, regulatory defense and fines, business interruption from cyber events, ransomware payments, and third-party claims from data exposure.

Typical Limits

$1M per claim / $1M aggregate for small businesses; $5M-$10M+ for larger organizations

Premium Range

$750 - $3,000/year for small businesses; $5,000 - $25,000+ for businesses handling significant PII or PHI

Risk Profile

Physical Risk

moderate

Liability Risk

moderate

Professional Risk

high

Property Risk

low

Top Risks

  • Workers comp for placed employees
  • Co-employment liability
  • Negligent hiring claims
  • Wage and hour disputes
  • Client worksite injuries

Carriers That Write Staffing & Temp Agencies

One of the largest small commercial writers in the U.S. with broad class appetite. Competitive BOP pricing and a streamlined agent portal with fast online quoting.

GLWCCyber

Broad appetite across most commercial classes with competitive package pricing. Strong multi-line capabilities — agents can bundle GL, property, auto, and umbrella under one carrier.

GLWCCyber

Known for competitive commercial auto rates and fast online quoting. Strong appetite for businesses with vehicle fleets and a growing BOP book.

GLWC

Berkshire Hathaway-backed (AM Best A++) with competitive pricing for standard small business classes. Fully online quoting and binding process.

GLWC

Cost Estimate

$2,000 - $10,000 for businesses with $1M - $20M revenue

Key Pricing Factors

  • Annual revenue ($1M - $20M is typical for this class)
  • Employee count (10-100 is typical)
  • Gross billing revenue
  • Payroll by classification
  • Industries served
  • Temp vs perm placement ratio

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Frequently Asked Questions

How much does Staffing & Temp Agencies insurance cost?
Insurance costs for Staffing & Temp Agencies businesses vary based on revenue ($1M - $20M), employee count (10-100), location, claims history, and coverage types needed. Key coverages include GL, Workers Comp, Professional Liability (E&O). Get quotes from multiple carriers to find competitive pricing — premiums can vary 20-40% between carriers for the same account.
What insurance does a Staffing & Temp Agencies business need?
Most Staffing & Temp Agencies businesses need GL, Workers Comp, Professional Liability (E&O) at minimum. Workers comp is the dominant cost — premium based on payroll of ALL placed workers The right coverage package depends on your revenue, employee count, and specific risk exposures.
What are the biggest insurance risks for Staffing & Temp Agencies businesses?
The primary risks for Staffing & Temp Agencies businesses include: Workers comp for placed employees; Co-employment liability; Negligent hiring claims; Wage and hour disputes. Common claims include Placed employee injury at client site, Negligent hiring/screening claim, Co-employment discrimination claim. Understanding these risks helps agents recommend appropriate coverage limits and endorsements.
What do carriers look at when underwriting Staffing & Temp Agencies businesses?
Key underwriting factors for Staffing & Temp Agencies include: Gross billing revenue, Payroll by classification, Industries served, Temp vs perm placement ratio, Background check protocols, Workers comp experience mod. Carriers use these factors to determine pricing and eligibility. Businesses with clean loss history and strong risk management practices typically qualify for better rates.
What should agents know when quoting Staffing & Temp Agencies insurance?
Workers comp is the dominant cost — premium based on payroll of ALL placed workers. Co-employment creates liability for actions of client companies toward placed workers. Negligent hiring E&O exposure requires thorough screening documentation. Using a comparative rater to quote multiple carriers simultaneously helps agents find the best combination of coverage and pricing for each Staffing & Temp Agencies account.

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