As the demand for contractors continues to increase, clients are getting more picky about the vendors they select to supply them with the help they need. Did you know that “More than one third (36 percent) of U.S. workers are in the gig economy” according to Forbes? This movement is affecting all parts of the recruiting and staffing industry. One issue we see companies scrutinizing more closely is the Certificate of Insurance.
A Certificate of Insurance is a document that proves that the vendor is insured to take on the liability associated with employing the contractors. When you place contract candidates, most significant clients will want to see a Certificate of Insurance. This document helps to assure that all of the insurance policies are current and have acceptable dollar limits. Some might even want you to increase your limits depending on what type of job you are placing for. You will need to have one if you are running your own back-office.
Typically, companies will not work with vendors who do not meet specific insurance requirements. These requirements usually include, at a minimum:
- Professional Liability
- Commercial Excess Liability
- Employer Practices Liability Insurance (EPLI)
- Automobile Insurance
- Forgery and Bonding
These requirements prevent many smaller staffing and recruiting firms from taking contract job orders because this type of coverage is costly. But you don’t need to purchase insurance to meet your clients’ needs. You can outsource the employment of your contractors to a reputable contract staffing back-office that will then be responsible for carrying the required insurances. For example, FoxHire gives a comprehensive Certificate of Insurance that meets the requirements of most companies.
Don’t let the cost of insurance coverage rob you of the consistent cash flow that contract staffing can provide you. Let a contract staffing back-office, such as FoxHire, take on that responsibility so you can enjoy all of the advantages contract staffing has to offer.