Does a recruiting agency need the same insurance as a temporary staffing agency?

Not necessarily. The employment arrangement, services, contracts and actual work differ. Describe permanent placement and temporary staffing separately when reviewing coverage.

Can NRG decide a Washington staffing risk class?

L&I makes risk-class decisions for its accounts. The agency should direct classification requests to its L&I account manager.

Does a certificate prove that every client requirement is covered?

No. Compare the contract with the policies and endorsements. A certificate does not add coverage or change exclusions.

Business · By industry · Staffing and recruiting

Insurance for Staffing and Recruiting Agencies

Staffing agency insurance should reflect whether you recruit for permanent placement, employ temporary workers or do both. Review professional liability for your services, employment-related allegations, client contracts and workplace risks. For Washington temporary staffing, L&I's workers' compensation process is a separate part of that review.

Discuss our agency's insurance

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Updated November 6, 2026

Who this page is for

Temporary and contract staffing businesses
Permanent-placement recruiters and executive-search firms
Agencies reviewing a new client contract or assignment

Where this applies

For agencies operating in Washington, Idaho, Oregon or Arizona. The L&I discussion applies to Washington. Describe every operating and placement state; the employment arrangement, work and insurer eligibility determine which options can be considered.

General information vs. our service

What NRG does, and what it doesn't

What NRG does

Starts with your operating states, services and current policies to establish what insurance assistance is available
Discusses policy questions and suitable options within the insurers and programs NRG can access
Explains the terms of any proposal before you decide

What NRG doesn't do

Promise that every operation qualifies for coverage or that an inquiry binds insurance
Decide claims or replace the insurer's policy wording
Provide clinical, employment-law or licensing advice

What to review

Staffing and recruiting insurance questions, answered

How does temporary staffing differ from permanent recruiting?

Begin with who employs and pays the worker, what your agency promises the client and who directs the work. Permanent-placement recruiting and supplying temporary workers create different responsibilities. If your agency does both, include both services in the application and policy review.

Describe the arrangement before comparing insurance
Agency activity	Questions to document
Permanent placement or executive search	What screening, reference or placement services does the contract promise?
Temporary or contract staffing	Who employs the worker, pays wages, supervises tasks and reports injuries?
Specialist placements	What professional work, equipment, driving or other duties will the worker perform?
Work across state lines	Where are workers actually assigned, and which state processes apply?

What does professional liability mean for a recruiter?

Professional liability, also called errors and omissions insurance, addresses specified allegations about professional services under the policy's terms. Ask whether the insured-services description includes your recruiting, screening and placement activities. Chubb lists staffing agencies among the businesses considered for its miscellaneous professional liability product; that example does not confirm NRG access or your agency's eligibility.

Source: Chubb, miscellaneous professional liability (accessed November 6, 2026)

Is employment practices liability the same as placement E&O?

Treat them as separate review questions. An allegation about a placement service and an allegation about employment discrimination, harassment or dismissal can involve different policy wording. Identify applicants, internal employees, placed workers and client organizations, then ask which allegations and parties each proposal addresses.

Who pays workers' compensation premiums for Washington temporary workers?

L&I says the temporary staffing company pays the required workers' compensation premiums for the workers it supplies. If the agency does not pay, its client can be responsible for unpaid premiums. L&I makes risk-class decisions; ask its account manager about new assignments and classification requests.

Source: Washington L&I, temporary staffing (accessed November 6, 2026)

Does the client's insurance replace the agency's coverage?

Do not assume it does. Compare the client contract with your own policy and the relevant endorsements. Ask which entities are insured, how supplied workers are described, whether the work is included, and what any additional-insured or waiver requirement actually needs. A certificate summarizes information; it does not rewrite a policy.

Who handles safety and training for temporary workers?

Both the agency and the host employer have responsibilities. OSHA recommends identifying their respective roles in the contract and communicating about workplace hazards and training. Ask who confirms the assignment's actual duties, provides site-specific training and reports changes before a worker takes on a new task.

Source: OSHA, protecting temporary workers (accessed November 6, 2026)

What affects staffing agency insurance cost?

Prepare the placement types, industries served, operating states, payroll or revenue information as requested, client contracts and loss history. Compare the same insured services and limits across proposals. A price for an office-only recruiting firm is not a reliable budget for an agency supplying workers to different client worksites.

What to prepare

Temporary staffing, direct hire and other services you actually provide
Operating states, client industries and assignment duties
Payroll, revenue and placement information requested by the reviewer
Client insurance requirements and sample contracts
Current policies, endorsements, limits and loss history
Safety responsibilities, subcontractor use and planned service changes, without applicant records