$10M Professional Liability (E&O) Insurance for Staffing Agencies

For staffing agencies with a client contract that requires $10M: it usually means a primary Professional Liability policy plus excess layers that add up to $10M.

What does a $10M requirement mean for staffing agencies?

It means your contract sets $10M as the minimum limit. Professional Liability (E&O, short for Errors and Omissions) covers claims that a mistake in your services cost a client money. For a staffing firm, that might be a screening error or a missed credential. A $10M clause might read:

• Per claim and aggregate: the most paid for one claim, and for all claims in a policy year. See how limits are written.
• Claims-made: Professional Liability almost always covers claims first made and reported while the policy is active, for work after the retroactive date (the earliest date of work covered).
• Primary plus excess: this clause allows stacking. If yours is silent, confirm with the client that primary plus follow-form excess meets the clause.

Who asks staffing agencies for $10M?

Very large employers, managed service providers, banks, hospital systems and government agencies are the usual sources of a $10M requirement for staffing agencies. $10M is less common than $1M to $5M. It comes up when one contract is very large or placed workers touch high-stakes work:

• Managed service providers (MSPs), firms that run a client's staffing vendors. An MSP master agreement often passes the same insurance clause to every supplier agency, so one contract can set your limit for all its client sites.
• Banks and insurers whose contract staff reach money or customer data.
• Large hospital systems, mainly for revenue cycle or other non-clinical staff.
• Government agencies with large staffing contracts.
• Clients that buy recruitment process outsourcing (RPO), where you run their hiring.

How is $10M built for a staffing agency?

A primary policy pays first. Each excess layer pays only after the layers below it are used up. "$5M xs $5M" means a $5M layer that sits above the first $5M.

At $5M, one primary policy may be enough. At $10M, the contract usually needs one or more excess layers on top.

The shape of the tower depends on what each layer's underwriter will offer. Every layer should follow form, meaning it uses the primary policy's terms, and share the same retroactive date, policy period and named insured (the business the policy protects). A commercial umbrella almost never counts (here is why).

Many staffing firms buy Miscellaneous Professional Liability, a general form for services firms. Firms placing clinicians may need a healthcare-focused form, such as medical professional liability, instead. The right form depends on your services and the policy wording.

If you already carry a lower limit, Morrow can request new quotes for a higher primary or for excess layers above it, keeping your retroactive date and prior acts coverage (coverage for work done before the new policy starts) where the market allows.

What will underwriters ask for?

An underwriter decides whether a carrier offers coverage. Expect questions about:

• Revenue split between temporary staffing, direct hire, executive search and RPO.
• Which roles reach client money, systems or patient care.
• Your screening steps and background checks.
• The $10M contract and its indemnity terms (who pays if something goes wrong).
• Loss runs (your claims history report), your current policy and retroactive date.

What affects the cost?

• Placement mix. Healthcare, finance and IT placements may cost more to insure than clerical or light industrial roles.
• Size of the contract. One very large client can drive the price of every layer.
• How the tower is built. The primary usually costs the most per $1M of limit.
• Claims history. Past claims can raise the price or shrink the limit offered.
• Retention and defense terms. The retention is what you pay on each claim before the policy pays.

Frequently asked questions

Do I need $10M Professional Liability as a staffing agency?

You need it only if a client contract or master vendor agreement requires it, so check the insurance section first. If the clause allows stacking, confirm with the client that primary plus follow-form excess meets it.

Can a mid-sized staffing agency get $10M in Professional Liability?

It may be possible, but size alone does not decide it. Carrier underwriting, your placement mix, your contract and your claims history all matter, and $10M may not be available for every firm. Because $10M almost always needs a broker, Morrow can help you find it.

Can my client be added as an additional insured on my Professional Liability?

Usually not. Professional Liability protects you against claims from clients. A certificate of insurance (a one-page proof of coverage) that lists every layer, with each limit and policy period, is the usual proof.

This article is general information, not legal advice or a coverage determination. Coverage depends on the actual policy wording, carrier underwriting and your contract terms.