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IT Staffing Agency Insurance
IT Staffing (Staffing other than IT is ineligible)
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Why do IT staffing agencies need business insurance?
A lawsuit from a client could financially devastate your employment agency. Business insurance protects against unexpected costs related to staffing errors, client disputes about temporary workers, and other risks that could put a small agency out of business.
Find affordable coverage
Temporary staffing firms and employment agencies can save money by comparing quotes from top insurers.
Fill out Insureon's easy online application to get free quotes and advice from a licensed insurance agent.
What types of insurance do IT staffing professionals need?
These insurance policies cover common risks in the staffing industry.
Technology errors and omissions insurance
Technology E&O, sometimes called professional liability insurance, can cover mistakes made by a temporary staffing agency. It's strongly recommended in the IT professional service industry.
BEST FOR
- Missed staffing deadlines
- Failure to conduct a background check
- Work errors and oversights
Cyber insurance
This insurance coverage helps IT staffing firms survive data breaches and cyberattacks. It's recommended for any business that handles sensitive information.
BEST FOR
- Data breach lawsuits
- Client notification expenses
- Fraud monitoring costs
General liability insurance
A general liability policy covers basic staffing services risks, such as client injury at your office. Bundle with commercial property insurance for savings in a business owner’s policy (BOP).
BEST FOR
- Third-party bodily injuries
- Third-party property damage
- Libel and other advertising injuries
Fidelity bonds
Fidelity bonds compensate your clients if an employee or temporary employee steals from them. They may be required by client contracts.
BEST FOR
- Unlawful data access by an employee
- Unauthorized money transfers
- Other employee theft or fraud
Workers’ compensation insurance
Most states require workers' comp for IT staffing companies that have employees. It also protects sole proprietors from work-related healthcare costs.
BEST FOR
- Employee medical expenses
- Disability benefits
- Employee injury lawsuits
Commercial auto insurance
Commercial auto insurance covers the cost of accidents involving business-owned vehicles. For personal cars used for business, you may need hired and non-owned auto liability insurance.
BEST FOR
- Auto accidents
- Vehicle theft and vandalism
- Vehicle weather damage
Looking for different coverage? See more policies.
How much does IT staffing agency insurance cost?
A small IT staffing business with a few workers will pay less for insurance than a large company.
Factors that affect premiums during underwriting include:
- Staffing services offered
- Business property and equipment
- Business size and annual revenue
- Types of property and liability coverage purchased
- Number of employees
- Add-ons, like additional insureds
- Policy limits and deductibles
How do I get IT staffing agency insurance?
It's easy to get IT staffing business insurance or employment agency insurance if you have your company information on hand. Our insurance application will ask for basic facts about your agency, such as revenue and number of employees. You can buy a policy online and get a certificate of insurance with Insureon in three easy steps:
- Complete a free online application.
- Compare insurance quotes and choose policies.
- Pay for your policy and download a certificate.
Insureon's licensed agents work with top-rated U.S. insurers to find coverage that fits your IT staffing agency, whether you work independently or hire employees.
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Common questions about insurance for IT staffing agencies
Review answers to frequently asked questions (FAQs) about IT staffing company insurance and more.
Why is business insurance necessary for IT agencies?
There are several types of insurance to help protect your IT staffing business from costly lawsuits, from startups to well-established companies.
Here’s a closer look at some key insurance products and why you should carry them:
- Technology errors and omissions insurance, sometimes called tech E&O or tech professional liability insurance, is a bundle of E&O with cyber insurance. This policy can help you with legal fees and court costs if a dissatisfied client sues you over your work performance or a third-party cyber incident. It covers customer notification fees, credit monitoring, defense costs, and fines.
- Commercial property insurance covers your business property and equipment if it's damaged, lost, or stolen at your fixed business address. Should your machinery or equipment suffer a mechanical or electrical failure, equipment breakdown coverage would provide the funds to repair or replace the damaged equipment. Typically, low-risk businesses can bundle commercial property and general liability coverage in a business owner's policy (BOP), which is cheaper than buying the policies individually.
- Employment practices liability insurance (EPLI) safeguards your business if you're sued by an employee over wrongful termination or another violation of employee rights. EPLI can also be added as an endorsement to a general liability or business owner's policy.
- Commercial crime insurance, also referred to as fidelity insurance, financially protects your business from criminal acts committed by employees against clients. Should an employee (or anyone else working on your behalf) steal from a customer or client, crime insurance provides them with reimbursement for the amount that was stolen.
- Electronic data processing insurance (EDP) covers electronic devices such as computers, storage devices, and the data they contain. Also known as computer coverage or data processing coverage, EDP insurance can help protect against data loss during a power surge, fire, natural disaster, or similar event.
- Business income insurance, also known as business interruption coverage, offsets your lost net income when your business is forced to close because of a covered peril, such as property damage. These funds help you cover your normal operating expenses until you can resume business operations.
- Commercial umbrella insurance augments your general liability, commercial auto, or employer’s liability insurance policy if the coverage limit is reached on a claim. Businesses usually need it to fulfill a contract that requests higher than standard policy limits offered by an insurance company.
Are IT staffing companies required to have insurance?
Carrying the right insurance coverage makes it easier for IT staffing agencies to protect their businesses and qualify for contracts and leases. Depending on your industry and state, some policies are required by law.
For IT staffing businesses, workers' compensation coverage and commercial auto insurance may be required if they have employees and own a business vehicle. If your business doesn't have employees or uses personal vehicles for work, your temporary staffing agency insurance requirements will differ in that you won't be required to obtain workers' comp and will need HNOA insurance instead of commercial auto.
Typically, IT staffing startups will apply for general liability insurance first. This policy helps cover common business risks such as customer injuries, damage to a customer’s property, and advertising injuries.
Even small businesses are vulnerable to the same exposures and lawsuits as larger businesses. This is another reason why you should consider IT staffing company insurance.
In order to accept certain contracts, you may need to have a fidelity bond, which reimburses the client if one of your employees commits fraud, theft, or forgery.
Do temporary IT staffing agencies need professional indemnity insurance?
While IT staffing businesses usually aren't required to carry professional indemnity insurance, it should be a key component of your business's risk management plan to safeguard your livelihood from financial losses.
Professional indemnity insurance, also called professional liability insurance or errors and omissions (E&O) insurance, protects you in the event a client files a lawsuit against your staffing business for an error, mistake, or professional negligence. This type of coverage is sometimes referred to as software liability insurance for technology businesses.
You can bundle professional liability insurance for IT staffing agencies with cyber insurance (also called cyber liability insurance) into a technology professional liability policy, which is more commonly referred to as tech E&O. This would be a more affordable insurance option than purchasing the policies individually.
How can I save money on IT staffing agency insurance?
To get affordable coverage that meets your IT staffing business insurance needs, you can start by comparing free business insurance quotes from leading insurance companies through Insureon’s online application.
If you're unsure what IT staffing insurance solutions you need, our licensed insurance agents can help make sure you get the right, most affordable coverage.
Most small businesses can get insured and download a certificate of insurance within hours of applying for quotes.