Insurance for Recruiters and Recruitment Agencies
Jan 30, 2020
Considering business insurance as a recruiter, a recruitment, staffing or employment agency is a good start. However, it's important to note that only having a general liability policy isn't necessarily enough insurance for recruiters. As a recruiter, you're often at risk of things not panning out perfectly with clients when it comes to suggesting employee candidates. This can often lead to disagreements - even if you're not at fault. With our increasingly litigious society, these disagreements can even lead to lawsuits. Without the proper coverage, like Professional Liability (PL), a lawsuit can tarnish your agency's finances and reputation.
What is Professional Liability (PL) Insurance?
Professional Liability or PL insurance is similar to Errors and Omissions (E&O) insurance. Both provide coverage that protects your business from most errors, mistakes or oversights; basically any professional wrongdoings. The only difference is that PL is usually used for consultants like recruiters, while E&O usually refers to accountants, real estate agents and tech professionals.
Learn more about other additional insurance coverages defined.
Why do recruiters need Professional Liability Insurance?
You know that if a candidate doesn't work out for your client; it's not necessarily your fault. This is because many factors can be out of your control as a recruiter. Candidates can lie on their resume or exaggerate their skill sets. Sometimes, it just isn't the right fit between your client and the candidate. Even if it isn't your fault, you could still find yourself in the middle of a lawsuit.
As a recruiter, you are usually in possession of confidential and private information about your clients. It is easy to make a human, yet costly, mistake like accidentally sending private information to the wrong client. These mistakes, although accidental, can also lead to a lawsuit.
Having PL insurance can provide protection from these lawsuits and these kinds of errors. At the end of the day, simply knowing you have the right insurance coverage and are prepared in the worst case scenario can give you peace of mind. Having PL insurances shows your clients that you're trustworthy, prepared and reliable.
Want to learn about additional, modern business risks? Check out our Emerging Business Risks blog.
At Foxquilt, you can join up with other recruiters and recruitment agencies to get group savings on your business insurance. Leverage the recruitment, employment and staffing community to get rewarded on your insurance today. Get your quote today
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