Running a staffing agency comes with a unique kind of risk. You are not just managing your own business; you are placing employees into other companies, often across multiple industries and job sites. That means your exposure extends beyond a typical office setup to areas such as workplace injuries, hiring disputes, and client liability. In…
Running a staffing agency comes with a unique kind of risk. You are not just managing your own business; you are placing employees into other companies, often across multiple industries and job sites. That means your exposure extends beyond a typical office setup to areas such as workplace injuries, hiring disputes, and client liability.
In this guide, I walk through what staffing agency insurance actually covers, how much it costs in 2026, and which providers are worth considering. Whether you are just getting started or reviewing your current coverage, this will help you make smarter, more confident decisions.
As the intermediary between employers and employees, your specific risks and insurance needs can vary greatly depending on the type of staffing you provide. As such, going with a broker like Simply Business is a great way to find coverage. It works with over a dozen top providers to help you compare costs and buy insurance online.
To build this list of the best staffing agency insurance companies, I focused on providers widely used by staffing firms, as well as newer platforms offering competitive pricing and flexible coverage options. My goal was to identify insurers that balance cost, coverage, and ease of access for agencies of different sizes and risk levels.
Each provider was evaluated using consistent criteria that reflect how business owners actually shop for insurance, including the following categories:
Pricing & value: I compared average premium ranges, minimum premiums, and available discounts to understand overall cost and which providers offer the best value for small, mid-sized, and larger staffing agencies.
Coverage options: I evaluated each insurer’s ability to provide essential policies such as professional liability, general liability, workers’ compensation, and employment practices liability, along with any industry-specific endorsements.
Ease of getting coverage: I considered how simple it is to get a quote, bind coverage, and manage policies, including whether providers offer fully online applications or require working through an agent.
Industry expertise: I reviewed whether each company has experience working specifically with staffing agencies, including the ability to handle complex risks like multi-state placements and high-risk job categories.
Customer support: I looked at claims handling reputation, access to agents or advisors, and the availability of support across different channels.
Customer feedback: To validate real-world performance, I incorporated customer reviews and reputation data from trusted third-party platforms and insurance industry sources.
When available, I also reviewed sample quotes, policy documents, and coverage details to better understand how each provider performs in real-world scenarios.
To calculate the premium for any insurance policy, insurance companies draw on a large data set built up over years of experience. This data set pulls in from multiple areas of a business. Some of the areas insurers consider are the risks associated with your business, the type of coverage, and the limits you select.
For example, a temp agency supplying workers in construction or manufacturing will likely pay more for workers’ compensation than an agency that places white-collar workers.
Insurance Policy
Annual Estimated Premium
Policy Limit
Deductible
General Liability
$250 to $1,000
$1 million per occurrence, $2 million aggregate
$0
Commercial Property
$700 to $3,000
$50,000
$1,000
Professional Liability
$600 to $800
$1 million per occurrence, $1 million aggregate
$0
Employment Practices Liability
$1,080 to $3,200
$300,000
$500
The cost of workers’ compensation is based on a standardized formula that considers the job risk, payroll, and claim history. Thus, a high-risk industry or a business with a history of workers’ comp claims will have a higher workers’ comp premium.
Insurers consider other factors when determining premiums, including the following:
Deductibles: A deductible is like a copay — it is a policyholder’s financial responsibility for a claim. While a higher deductible will usually lower the premium, the impact on the premium can be minimal, so keep in mind that a higher deductible means you are responsible for a larger amount if there is a claim. While general liability does not carry a deductible, one may be present for professional liability or property coverage.
Limits: Many insurers will offer different limits of coverage. For example, you could purchase a policy with a total limit of $500,000, $1,000,000, or $2,000,000 per policy. Each limit will come with a different price tag. Smaller limits are often more affordable but carry a greater risk of being underinsured.
Industry: The type of industry your agency works with will bear with it a different level of risk exposure, which will be reflected in the premium. Construction and transportation are some of the riskier industries and will cost more to insure.
Claims history: Insurers will ask about claims filed in the last three to five years when gathering information for a quote. Numerous prior claims indicate future risk. While you can’t change the past, being proactive about reducing risk will go a long way towards lowering your future premiums.
Revenue: If your staffing agency needs workers’ comp, revenue will be factored into the premium.
Employees: The larger your company, the greater your exposure to employee injury or poor client interactions. Larger firms will often have higher premiums. The number of employees you employ can also determine what coverage you need.
Location: If your agency employs staff in different states, your premium may increase. Location also impacts cost because some areas are more prone to natural disasters than others, while some zip codes are highly litigious and others are not.
Unless your business operates more like a headhunter, i.e., finding employees who then work for the company that hired you, your agency is the employer of record (EoR) for a temporary employee. This means you’ll be assuming all risks associated with the employee and not the company where they work.
Each situation presents a unique business insurance need, and depending on the circumstances, it can help you understand which types of employment agency insurance are right for your business.
The most important coverage for a staffing agency is professional liability insurance. Commonly called errors and omissions (E&O) insurance, this protects your business if you are accused of making a mistake when rendering your services. If your staffing agency works with finding nurses and other medical personnel, you will want to consider medical malpractice insurance, a type of professional liability.
For example, if an international law firm requested someone fluent in Portuguese and, instead, you recommended someone who spoke Spanish, then the firm could come after your agency for the error.
The right policies for your business will depend largely on your business structure. General liability insurance policies protect you from claims of bodily injury or third-party property damage. Both of these fall under the premises liability portion of a general liability policy. So, if you have any interaction with third parties on your premises, then you will want general liability. Besides that, if you own or rent a space, then you should consider commercial property as well.
If your business acts as an EoR, then general liability will extend to the actions and statements made by your employees at the business where they are placed.
Commercial property is a first-party coverage that takes care of the business property should it be damaged, vandalized, or stolen. There are different types of commercial property insurance policies, but for staffing agencies, a bundled policy known as a business owner’s policy (BOP) makes a lot of sense.
BOP combines general liability, commercial property, and loss of business income into one policy and is often a less expensive way to obtain property and liability insurance. For example, a BOP with $500,000 in liability and $50,000 in property costs $568 annually.
To get an idea of the differences between the two policies, check out our comparison of BOP vs general liability.
Given the nature of a staffing agency, EPLI or employment practices liability insurance is an important type of insurance for staffing agencies. It covers wrongful acts in recruiting, interviewing, hiring, and firing an employee.
As the staffing agency, if you decide not to interview someone because they disclose they are pregnant during the interview process, and you know the client is looking for someone who can start working immediately on a project that will need their attention for months, this could open your agency up to a lawsuit. To avoid this, review all questions and assessments to ensure they are not discriminatory.
Another type of insurance for staffing agencies, and the only type of insurance that is even close to nationally required, is workers’ compensation insurance. Every state except Texas and South Dakota requires employers to provide workers’ compensation. Beyond that, the only other type of insurance with a requirement is commercial auto. If your business owns a vehicle, then it will need a commercial auto insurance policy.
Workers’ compensation by state
If an employee gets injured or becomes ill because of their employment, workers’ comp will help with replacing their wages and medical bills, and usually provides a return-to-work program for the employee. It carries liability protection for the employer, too. This type of insurance can be costly for staffing agencies. In my research, I found one provider with a minimum annual premium of $5,000 to be considered.
Any staffing agency with employees will need to look into workers’ comp. However, every state has a different threshold for when the coverage is required and what type of employee — including temporary workers — qualifies for coverage.
Select Your StateSelect Your StateAlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareWashington, D.C.FloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming
State
Workers’ Compensation Requirements
State Website
Alabama
Coverage is required for businesses with five or more employees (part-time or full-time).
Required for any business with one or more employees. Casual employees who make less than $1,500 during 12 consecutive months prior to an injury are exempt.
The requirements for workers’ comp are subject to change by state law. The best practice is to check with your local state office to see if your agency is required to offer workers’ comp for temporary employees.
How to get insurance for staffing agencies
Finding staffing insurance can be tricky because of the industry’s complexity and the potential for overlapping employment. However, that doesn’t mean finding the right coverage for your agency is impossible or unaffordable. There are several ways to find insurance: by working directly with a carrier, using a broker, or working with a local agent.
Carrier or provider: It underwrites the policy, services the policy, and handles any claims when there is a loss. Many providers employ agents whom you can contact to get a quote. Simultaneously, many will also work directly with the consumer to help provide coverage. Many will provide a discount for customers working directly with them.
Broker: Brokers work independently of one specific carrier and instead will work with multiple carriers. This is a great option for finding insurance because the broker will be working for you rather than the carrier and has access to a large insurance marketplace.
Agent: Another option is to contact a local agent. The advantage of an agent is that you can rely on them throughout the life of the policy to help you: whether it is with a billing dispute, filing a claim, or getting an update on a request, a local agent is there to help you.
Insurance dedicated to staffing agencies can be challenging to find because of the complexity of employment status for placed clients and the risk involved. The companies here represent either specialty insurers or brokers that can work with multiple carriers to find coverage.
Agencies that are American Staffing Association (ASA) members
Simply Business: Best for comparing quotes from multiple insurers
Hiscox: Best for agencies working with white-collar workers
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Tivly: Best for finding insurance for staffing agencies
Philadelphia Insurance Companies: Best for EPLI policies for temporary workers
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World Wide Specialty: Best for ASA members
Bottom Line
Staffing agencies act as intermediaries between employers and employees. Because they come in all sizes and serve nearly every industry, finding the best staffing agency insurance provider can be challenging. Partner with one that can help you identify your risks and ensure you have the right coverage for your operations.
Simply Business can help you find the right company and coverage for your staffing agency. It can do this online — and in just minutes, you can have insurance for your business and be covered for the year.
Staffing agency insurance is a policy or combination of policies that offers protection for your business by covering your physical property and protecting your financial assets from claims of negligence. The most important policy is professional liability, followed by general liability and commercial property.
There are no specific requirements for staffing agency insurance. However, most states do require some level of workers’ compensation insurance for all businesses. Additionally, companies you contract with may require insurance and request proof of insurance or a certificate of liability showing your staffing agency is properly insured.
Insurance for employment agencies will vary depending on the coverage selected, location, size, and claims history, to name just a few. A general liability policy with $2 million in aggregate coverage can cost anywhere from $250 to $1,000 annually. Commercial property with a limit of $50,000 can be as low as $700 to $3,000.
Professional liability, unlike general liability, is more specific to liability for E&O in services rendered (specifically if those errors caused another party financial harm). This can include failure to meet the requirements of a contract, like recommending a candidate for a job who lacks the specific experience required by the employer.
Most commercial general liability policies carry personal and advertising injury coverage. The limit for this is typically $1 million. It is important to always review what coverages are included with the policy.
Rayanne Harmon is a seasoned finance professional with over 30 years of experience spanning banking, finance, accounting, and customer relationship management. She brings extensive expertise in consumer and business banking, including credit products such as HELOCs, home equity loans, auto loans, and other consumer lending solutions. Her background also includes financial risk assessment and treasury management, where she has led process improvements and supported client-focused banking initiatives.
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