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Insurance for Medical Personnel Services

Insurance of medical personnel services 

Medical personnel service agencies connect hospitals, clinics, and long-term care facilities with the staff they need—nurses, physicians, and allied health professionals. While agencies do not typically provide direct patient care, they assume responsibility for credentialing, placement, and oversight, which creates real liability exposure if something goes wrong.

Homewood Insurance helps staffing agencies secure liability coverage that protects against claims tied to negligent placement, vicarious liability, and contractual disputes.

This page explains the following:

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Complete our quick quote form and share your staffing mix, placement settings, and state of operation. We’ll provide clear options from carriers that understand the risks of medical personnel services and offer competitive protection.

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Insurance for Medical Personnel Services can include:

  • Professional Liability for negligent placement, credentialing, or supervision failures.
  • General Liability for accidents, property damage, and premises exposures.
  • Vicarious Liability coverage for the actions of placed personnel within their scope of practice.
  • Legal defense for contractual disputes and employment-related claims.
  • Optional coverage for sexual abuse and molestation (SAM).
  • Coverage extensions available for multi-state staffing, travel nurse programs, and locum tenens placements.
  • Standard policy limits up to $1M per claim / $3M aggregate, with tail and retroactive coverage options.

More information

Insurance for Medical Personnel Services can include:

Malpractice or liability insurance can provide essential protection against these risks:

  1. Professional Liability (Malpractice Insurance)

    1. Protection against claims tied to negligent placement, improper credentialing, or failure to verify licensure.
    2. Vicarious liability for malpractice committed by placed personnel while acting within their role.
    3. Defense against allegations that unqualified staff caused patient harm.
    4. Coverage for disputes tied to orientation, training, or supervision of placed providers.
    5. Options to extend to locum tenens, allied health, and advanced practice provider placements.

  2. General Liability Insurance (premises and operations)

    1. Slip-and-fall claims at staffing offices, training centers, or job fairs.
    2. Property damage during agency-run orientations or events.
    3. Advertising injury including defamation, copyright infringement, or misleading recruiting ads.
    4. Abuse and molestation coverage (limited; must be specifically endorsed).
    5. Medical payments coverage for small third-party injuries, regardless of fault.

  3. Other key coverages often added for staffing agencies

    1. Employment practices liability (EPLI): protection for wrongful termination, discrimination, or harassment claims brought by staff or contractors.
    2. Cyber liability Insurance: for breaches of applicant, employee, or facility data, including background checks and credentialing files.
    3. Workers’ compensation: mandatory coverage for employed healthcare workers placed in facilities.

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How much does Insurance for Medical Personnel Services Cost?

Professional Liability Insurance – Estimated Ranges

  • Small staffing agency (clerical/low-risk allied health only): $3,000 – $7,500 per year.
  • Mid-sized agency with mixed placements (nurses, therapists, techs): $7,500 – $20,000 per year.
  • Large multi-state agency with advanced practice providers or locum tenens: $20,000 – $50,000+ per year.

General Liability Insurance – Estimated Ranges:

  • Small office: $750 – $2,000 per year.
  • Multi-office or larger agency: $2,000 – $5,000+ per year.

Other typical costs

  • Workers’ compensation: based on payroll; high for nursing staff.
  • Cyber liability: $500 – $2,500 per year, depending on data volume and IT controls.
  • Employment practices liability: $1,000 – $3,000 per year for small to mid-sized agencies..

Key pricing factors include:

  • Staffing mix (RNs and NPs are higher risk than clerical or allied health staff).
  • Placement settings (hospitals, prisons, nursing homes increase exposure).
  • Jurisdiction (higher rates in New York, California, Pennsylvania, Florida).
  • Claims history (frequent or severe claims drive premiums and may limit carrier options).

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High-Risk Procedures and their Impact on your Premiums

Staffing certain specialties or facilities can lead to surcharges, higher deductibles, or coverage refusals:

Category Examples Why It’s Higher Risk Insurance Impact
Obstetrics / Gynecology Prenatal care, labor and delivery, C-sections Birth injuries have some of the largest jury awards Premiums often 30–50% higher; some carriers restrict OB staffing
Surgical Orthopedic, bariatric, cardiothoracic procedures Severe complications from surgical errors and infections 20–40% increase; strict credentialing required
Critical Care ICU, NICU, ventilator management High mortality and long-tail claims; complex patient profiles 25–50% surcharge; claims history heavily scrutinized
Emergency ER triage, resuscitation, trauma stabilization Fast-paced settings with high error potential Premiums surge; carriers may restrict ER-only staffing agencies
Correctional Care Prison or jail medical staffing Injury from assaults, delayed care claims, adversarial litigation Often declined if >10–20% of placements; very few carriers participate
Advanced Practice Providers Nurse practitioners, physician assistants, CRNAs Independent scope of practice approaches physician-level exposure Premiums rise 20–30%; higher deductibles common

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Other types of Insurance Medical Personnel Services may need

 
General Liability Insurance

General Liability Insurance

General Liability covers medical expenses and attorney fees which result from bodily injuries and property damage that your facility or organization could be legally responsible for.
 
 
Professional Liability Insurance

Professional Liability Insurance

Also known as malpractice insurance, this  protects facilities against claims related to malpractice, negligence, or injury resulting from resident care. Staff members will typically be covered by professional liability insurance.
 
 
sexual-molestation

Sexual Abuse and Molestation Insurance

Provides coverage for your medical personnel services organization against claims arising from alleged sexual misconduct or molestation by an employee or other representative of your organization. Essential for the senior living industry.
 
 
Commercial Property Insurance

Commercial Property Insurance

This protects your facility against damage or loss to your buildings, equipment, and other property, which can happen as the result of various risks such as fire, theft, or vandalism.
 
 
workers compensation insurance

Workers Compensation Insurance

Workers Compensation Insurance is usually mandated by law. It protects medical personnel service organization and employees in case of work-related injuries or illnesses.
 
 
Cyber Liability Insurance

Cyber Liability Insurance

Covers you against financial losses associated with data breaches, cyber attacks, and other cyber incidents. Insurers will usually conduct rigorous testing of your online system to fix vulnerabilities as part of this policy.
 

Why Work With Homewood Insurance

  • Policies designed for the unique liability of staffing agencies—not just generic business coverage.
  • Access to nearly 100 insurance carriers, including those that specialize in medical staffing.
  • Guidance on structuring coverage for multi-state operations, locum tenens, and advanced practice providers.
  • Help reviewing contracts to shift liability where possible and prevent coverage gaps.
  • Clear advice on credentialing, orientation, and compliance protocols that carriers look for when pricing.

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Ralph Schiller

Ralph Schiller

Ralph specializes in sourcing the most suitable insurance for Medical Personnel Services at the best price. You can call him or fill out the form and he will get your message directly.