Temporary staffing agencies specialize in connecting client employers and employees. Whether you work in a staffing agency or are a potential client or temporary employee, discover cyber risks for temporary staffing agencies as you protect yourself.
Digital information theft has become almost more common than physical theft. Since the majority of staffing agencies make connections online, a variety of personal and confidential information found on cover letters, resumes and job descriptions is at risk, including:
- Social security numbers
- Addresses, current and former
- Former employers
- Other identifiable information
If this data is compromised or stolen, the agency is liable.
Breach by a Temporary Employee
Once a temporary employee is placed in a job, the staffing agency remains responsible for that employee. If the employee steals information or causes a security breach, the staffing agency could be held liable.
Breach by a Partner Employer
A partner employer may not use strict security measures. That means the agency or temporary employee’s information could be at risk or the temporary employee could easily breach the network and steal confidential information. In that case, the staffing agency could be liable.
How to Combat Cyber Risks for Temporary Staffing Agencies
Now that you know the cyber risks, learn how to combat them.
Purchase cyber insurance.
As a temporary staffing agency, make sure your cyber insurance policy us up-to-date. Ask your partner employers to purchase cyber coverage, too, that covers both full-time and temporary employees.
Resumes, cover letters and all data must remain secure. Use data encryption and update your IT security system, including software and passwords, regularly.
Review your errors and omissions coverage.
An E & O insurance policy protects the staffing agency if they’re negligent in recruiting, hiring or placement. However, it may exclude claims related to network security or privacy breaches, so review your Errors and Omissions coverage to ensure you’re protected.
An open communication policy with partner employers and temporary employees ensures everyone feels comfortable sharing concerns. It also allows you to follow up and ensure everyone follows security procedures.
Write a clear Employee Handbook.
Ensure all your staff and temporary employees know the proper procedures for maintaining privacy and securing data.
When a breach occurs, you have to decide who has responsibility. It could be the temp agency, the employer or the employee. Be clear in your contract for each job about who has responsibility.
When you know the potential cyber risks for a temporary staffing agency, you can take steps to protect the agency, client employers and temporary employees. Discuss your specific needs with your insurance agent as you purchase the right cyber insurance coverage and protect your assets.