Malpractice Insurance for Staffing Agencies

Malpractice insurance is essential for staffing agencies, particularly those placing professionals in high-risk industries like healthcare, legal, or technical fields.
When an agency provides temporary or contract employees, it assumes a degree of liability for the actions of those workers. If a placed professional, such as a nurse or physician, commits an error or acts negligently, the staffing agency could be held liable alongside the individual.
Malpractice insurance protects staffing agencies from the financial consequences of such claims, covering legal defense costs, settlements, and judgments. This allows the agency to operate with peace of mind, knowing it is protected from the potentially devastating costs of malpractice lawsuits.
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The fastest way to find the most suitable insurance coverage for CRNA staffing agencies is to fill out our quick quote form, so we can give you an idea of the type of insurance coverage that best suits you.
Westwood Insurance works with a number of different carriers to ensure you have the most suitable insurance coverage at the best price.
Insurance for CRNA staffing agencies can include:
- Covers third-party injury or property damage claims unrelated to clinical services.
- Applies to office operations, recruiting, credentialing, and administrative activities.
- Separate from professional liability for contracted CRNAs (which must be insured individually).
- Optional protection for hosted events, staff training sessions, and travel-based assignments.
- Policy limits up to $1M per occurrence / $3M aggregate; excess liability available.
Why do Staffing Agencies need Insurance?
CRNA staffing agencies face unique challenges that necessitate the need for malpractice or liability insurance. Here are key areas where these agencies are vulnerable:
- Professional Negligence: The most significant risk is the potential for claims of professional negligence against CRNAs placed by the agency. If a CRNA makes a mistake that results in patient harm, such as an anesthesia error leading to complications or even death, both the CRNA and the staffing agency could be sued for malpractice. This is because the agency is responsible for vetting the qualifications and competencies of the CRNAs it employs and places in healthcare settings.
- Improper Credentialing and Verification: Staffing agencies must ensure that all CRNAs they employ and place are properly credentialed, licensed, and fit to practice. Failure to conduct thorough background checks, verify credentials, or ensure ongoing competence can lead to situations where an unqualified CRNA is placed in a clinical setting, increasing the risk of patient harm and subsequent legal action against the agency.
- Vicarious Liability: Staffing agencies can be held vicariously liable for the actions of the CRNAs they place. This legal principle means that employers can be held responsible for the negligence of their employees while they are acting within the scope of their employment. Therefore, if a CRNA commits an act of negligence, the staffing agency can be sued alongside the individual CRNA and the healthcare facility.
- Contractual Disputes: Disagreements over the terms of contracts between CRNA staffing agencies, healthcare facilities, and the CRNAs themselves can lead to legal challenges. For example, if a healthcare facility claims that an agency failed to meet the agreed-upon terms regarding the qualifications or number of CRNAs provided, this could result in legal action.
- Employment Practices Liability: Staffing agencies also face risks related to employment practices, including claims of discrimination, harassment, wrongful termination, and breach of contract from the CRNAs they employ. These issues can lead to lawsuits that, while not directly related to patient care, require protection through liability insurance.
- Regulatory Compliance: Compliance with state and federal regulations governing healthcare staffing, employee classification, and labor laws is another area of vulnerability. Failure to comply with these regulations can result in fines, penalties, and lawsuits that can be financially damaging to the agency.
Malpractice or liability insurance is essential for CRNA staffing agencies to mitigate these risks. This insurance can cover legal defense costs, settlements, and judgments arising from claims of negligence or malpractice. It also provides protection against other liabilities, such as employment practices claims and contractual disputes. By carrying adequate insurance, CRNA staffing agencies can protect themselves financially and maintain their reputation in the healthcare industry, ensuring that they can continue to provide high-quality anesthesia professionals to healthcare facilities.





















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Covers bodily injury claims such as slip-and-fall accidents occurring at the agency’s office or hosted events.
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Protects against property damage allegations tied to business operations (e.g. damage to a leased office, equipment used during recruitment or credentialing).
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Applies to liability from vendor visits, job fairs, conferences, or onboarding events.
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Optional coverage for orientation programs, continuing education workshops, or team-building sessions held on or off-site.
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Includes liability protection for non-clinical staff, such as recruiters, HR professionals, schedulers, and credentialing officers.
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Helps meet insurance requirements in staffing contracts, state licensing, or leased office agreements.
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This policy provides up to $1,000,000 per occurrence / $3,000,000 aggregate in coverage, with umbrella/excess options available for multi-state agencies or those contracting high volumes of CRNAs.
What types of Insurance do Staffing Agencies need?

General Liability Insurance

Professional Liability Insurance

Sexual Abuse and Molestation Insurance

Commercial Property Insurance

Workers Compensation Insurance

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Dale Nelson
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