While temporary staffing firm operations clearly do present some risk exposures that are relatively unique, firm managers are to be encouraged to adhere to the fundamentals of the risk management process.

1. Exposure Identification.
2. Enumeration of alternative methods and techniques available to treat the exposure.
3. Selection and implementation of the perceived best techniques.
4. Monitoring the implemented techniques for effectiveness and making any necessary changes that are suggested and are available.

A company balance sheet is often a good source to use to indentify company assets that are at risk to a variety of perils most of which are quite susceptible to affordable insurance treatment.

Managers should also consider the employment of insurance products with varying deductibles as deductible can often impact the cost of insurance considerably. Also, utilization of non insurance risk transfers through contracts with third parties should also be considered. Some risks may prove to be too risky or costly to transfer and thus the principle of “risk avoidance” may need to be employed.

Staffing firm owners and managers are well advised to collaborate with their agents, brokers, and insurers and set an expectation that the risk management process should be exercised and rest as the center of gravity for  assessing and justifying insurance coverage overall risk management value propositions.