Staffing Agencies Worker's Compensation Insurance is a type of insurance coverage that provides financial protection for employers who hire temporary workers through a staffing agency. This coverage helps to protect employers from the financial risks associated with covering medical expenses and lost wages for injuries sustained by temporary workers. Staffing Agencies Worker's Compensation Insurance also helps to ensure that staffing agencies are compliant with state and federal regulations. Typically, the insurance coverage is provided by the staffing agency, but it may also be covered by the employer in some cases. This type of insurance is important for protecting both employers and staffing agencies.