Depending on what state an employee agency operates in, stop-gap insurance might prove necessary in order to cover against potential problems. It’s necessary to avoid legal issues and can help a company maintain its reputation.
The certain States Need the Right Coverage
Monopolistic states need stop-gap insurance. These include the states of North Dakota, Ohio, Washington and Wyoming. Having this coverage protects temporary employment agencies from being held accountable when it comes to bodily injury the temporary employee faces at their work site, or damage the employee did while at the work site. Without this, damages and claims could arise from several different employees.
Having Coverage Saves Money
Since several different employees can be placed on assignment, it’s possible that multiple instances could occur where either the employee got hurt, or they did damage to the work site. Having stop-gap insurance saves money, keeps the agency from losing a significant amount, and allows the agency to preserve its reputation. This goes a long way in building connections and preventing a loss of money if someone chooses to sue.
Having stop gap coverage is necessary for certain states when dealing with temporary employees. It saves money and prevents long-term problems from occurring depending on the incident that took place.