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, understand common cyber risks and steps you can take to reduce exposure.
Personal Information
Digital information theft is now more common than physical theft. Because many staffing agencies share resumes, cover letters and job details online, a range of personal and confidential information is at risk, including:
- Social security numbers
- Addresses, current and former
- Former employers
- Other identifiable information
If this data is compromised or stolen, the staffing agency can be held liable for the breach.
Breach by a Temporary Employee
Once a temporary employee is placed at a client site, the staffing agency often remains responsible for that worker. If the temporary employee steals information or causes a security breach, the agency could face liability for the incident.
Breach by a Partner Employer
A partner employer with weak security controls can put agency data and placed employees at risk. A temporary employee might inadvertently or intentionally access the employer's network and expose confidential information, which can create liability for the staffing agency.
How to Combat Cyber Risks for Temporary Staffing Agencies
Now that you know the cyber risks, consider these practical steps to protect your agency, clients and temporary employees.
Purchase cyber insurance.
As a temporary staffing agency, make sure your cyber insurance policy is up-to-date. Learn more about Staffing Insurance to understand common cyber coverages and limits that apply to staffing firms.
Secure information.
Keep resumes, cover letters and applicant data secure. Use data encryption, restrict access on a need-to-know basis, and update your IT security systems, software and passwords regularly.
Review your errors and omissions coverage.
An Errors & Omissions (E&O) policy protects the agency for negligent recruiting, hiring or placement, but it may exclude network security or privacy claims. Review your policies for gaps specific to staffing operations and see additional guidance for Temporary Help Agencies Insurance.
Communicate regularly.
Maintain open communication with partner employers and temporary employees so concerns about security can be raised and addressed quickly. Regular reminders and short training sessions help reinforce procedures.
Write a clear Employee Handbook.
Ensure all staff and temporary employees receive written procedures for maintaining privacy, using company devices, and reporting suspected incidents.
Establish responsibility.
When a breach occurs, determine who is responsible—your agency, the client employer or the employee—and document those responsibilities in your placement contracts and agreements.
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 — talk to your agent — as you choose the right cyber insurance coverage and protect your assets.
Frequently Asked Questions
What types of cyber incidents should a staffing agency prepare for?
Staffing agencies should prepare for data theft, phishing attacks, ransomware, and unauthorized access by placed employees or client networks.
Does cyber insurance cover data on applicant resumes?
Cyber insurance commonly covers costs from certain data breaches, but coverage varies, so review your policy for specific protections related to applicant and employee data.
Who is responsible if a temporary employee causes a breach at a client site?
Responsibility depends on the contract terms and circumstances; clear agreements and defined responsibilities can reduce disputes after an incident.
Should partner employers carry their own cyber insurance?
Yes. Requiring partner employers to maintain cyber coverage that includes temporary workers helps reduce shared exposure and clarifies financial responsibility after a breach.