Fiduciary Liability and Temporary Staffing Insurance go Hand in Hand
When a company hires contracted workers, temporary staff, or even regular employees, they will often offer benefit plans that are structured in order to retain their best employees and attract skilled workers. This is an important component to finding the right people for a specific job, however, there are times when mistakes are made in the management of such benefit packages. Sometimes it is a fault on the part of the company, other times it is the result of an unjust allegation made by a temporary staff member. In any case, such disputes can lead to significant financial loss on the part of employers. In order to protect themselves from such circumstances, many companies have contracted with insurance providers in order to become covered when these unfortunate situations arise. This type of policy is called Fiduciary Liability. Understanding the various components of temporary staffing insurance, including fiduciary liability, is important when making the decision to adopt a new insurance policy.
How it Works
Fiduciary liability is designed in order to respond to claims made against an employer regarding improper investments, insufficient funding, or the inability to fulfill fiduciary duties. Not only can such a policy protect your company when financial payouts are required, but it can also help to minimize the overall cost of litigation. The insurance providers who specialize in temporary staffing insurance are experienced and knowledgeable about such circumstances and can provide legal advice and (in some cases) even pay for the cost of an attorney.