Professional Liability Insurance Staffing, Recruitment and Employment Agencies

//Professional Liability Insurance Staffing, Recruitment and Employment Agencies

Professional Liability Insurance for Staffing, Recruitment and Employment Agencies

Professional Liability Insurance (which can also referred to as Errors & Omissions Insurance) is a type of insurance policy that may cover costs that are incurred in the case where you make a mistake while delivering a service, failing to deliver on what you have promised to do or failing to deliver at all. It responds to any claims that arise from acts of professional negligence.

 

Why Do Staffing, Recruitment and Employment Agencies Require Professional Liability Insurance?

Professional Liability Insurance is intended to help protect staffing, recruitment and employment agencies because they offer professional advice and services to individuals and companies, bearing the full cost of defending against a negligence claim made by a client (should they decide to file a lawsuit against you).

Are you a Staffing, Recruitment or Employment Agency looking for professional liability insurance protection? Get your FREE quote online

At Zensurance, we make getting a commercial business  insurance quote easy. Our hassle-free, easy to use and no-jargon tool walks you through the entire process. 

What Is Covered Under Professional Liability Insurance for Staffing, Recruitment and Employment Agencies ?

Staffing, Employment and Recruitment Agencies need Professional Liability Insurance Protection.

Staffing, Employment and Recruitment Agencies need Professional Liability Insurance Protection.

Most professional liability insurance policies may cover economic (financial losses) which are suffered by third-parties. This type of coverage is meant to protect you by covering the costs that are associated with any errors in the services that you have provided to your clients and customers. Along with staffing, recruitment and employment agencies,  professional liability insurance also applies to lawyers, accountants, brokers and financial advisors.

The most common exclusions in coverage for a professional liability police are:

  • Bodily Injury (BI) and;
  • Property Damage (PD)

The above are covered by Commercial General Liability (CGL).

What Is Not Covered Under Professional Liability Insurance for Staffing, Recruitment and Employment Agencies?

To fully protect yourself as a consultant, you’ll need to consider some other common policies. Here’s a list of additional protection policies that other staffing, recruitment and employment agencies typically bundle with their professional liability insurance to get the most out of their protection:

  • Commercial General Liability Insurance (CGL)
    This is the foundational liability insurance that any business should own at minimum. It coverts third-party lawsuits (bodily injury and property damage). (e.g. A client comes to a meeting at your office, slip and hurt themselves. They sue you because they’re injured).
  • Business Interruption 
    If you rent an office for your business and a flood destroys your work space, business interruption insurance may cover the costs associated with loss of income due to operations put to a halt.
  • Cyber Insurance
    If your customer information is compromised and their personal information is used against them (e.g. fraud activity where their I.D. is used), your customer can sue you for the cost of the damages associated. The added protection is a smart move, especially since the number of cyber attacks continue to grow, costing businesses lucrative amounts of money.
  • Directors & Officers Insurance (D&O)
    Directors & Officers Insurance protects your company against “wrongful acts” such as errors, omissions, breach of duty, neglect and misleading statements made on behalf of the company.
  • Legal Expense Insurance
    This type of insurance policy may cover legal costs allotted to defend your legal rights. This is especially targeted toward some claims relating to employment disputes, legal defence, contract disputes & debt recovery, statutory license protection, property protection, bodily injury and tax protection. (e.g. a former employee files a lawsuit against your company for wrongful dismissal. This policy will cover the cost of legal expenses).
  • Property Insurance
    Any property that you own which is used for your business which is damaged or stolen may be covered. (e.g. You have a company laptop that was stolen when someone broke into your commercial vehicle).
  • Contents Insurance
    This may cover the damage to, or loss of, your company assets and possessions. (e.g. Your work jacket was stolen—it was left in the back of your commercial truck, which was stolen).

If you’d like to know how to bundle your insurance protection to protect your business, call us at +1-888-654-6030 and one of our licensed Insurance Advisors would be happy to answer any questions you have. 

At Zensurance, we make getting a commercial business  insurance quote easy. Our hassle-free, easy to use and no-jargon tool walks you through the entire process. 

How Much Does Professional Liability Insurance For Staffing, Recruitment and Employment Agencies Cost?

The cost of owning professional liability insurance for a staffing, recruitment and employment agency will depend on a number of factors. Typically, premiums (what you pay for your insurance) will depend on various factors including your company’s gross revenue, founder resumes and financials.

If you’re ready to get a free quote online, our online tool can help you find an estimate in under 5 minutes!

What Kind of Information Do I Need To Get a Quote For Professional Liability Insurance for Staffing, Recruitment and Employment Agencies ? 

Some wise advice? To save yourself some time, it’s is a good idea to do some digging and gather some pertinent business information about you or the your company before requesting a quote.

Another great idea is to put together a list of questions beforehand so that you don’t forget what to ask once you get to speak to a broker about your options for professional liability insurance coverage. Think about the possible risks that you or your company can face when operating your business.

Here’s a list of several types of information about your business that you’ll need to gather in preparation for your search:

  • Name of your company
  • Address (and locations if applicable)
  • Revenue—this is a driving factor for your policy premium
  • Your company structure—(i.e. sole proprietorship, corporation, partnership, joint venture or franchise?)
  • The date that your company was established
  • Is your company registered in Canada?
  • What is the number of employees working for your company?
  • Do your employ subcontractors?
  • Privacy—do you collect private information (e.g. customer data, financial information). What measures do you take to protect this information?

Having this information will make requesting a quote easy and fast—whether it’s online, over the phone or in person, and will likely prompt more questions to ask!

If you’re ready to get a free quote online, Zensurance is making it easy for business owners to get a quote in under 5 minutes!

Looking for professional liability insurance for Staffing, Recruitment and Employment Agencies ? Get your FREE quote online

At Zensurance, we make getting a commercial business  insurance quote easy. Our hassle-free, easy to use and no-jargon tool walks you through the entire process. 


A Recap of What You’ve Learned About Professional Liability Insurance for Consultants

  • Professional Liability Insurance (which can also be referred to as Errors & Omissions Insurance or E&O) is an important policy that may cover costs that you incur in the case where you make a mistake while delivering a service, failing to deliver on what you promised to do or failing to deliver at all.
  • Professional liability insurance coverage focuses on alleged failure to perform on the part of, financial loss caused by, an error or omission in the service or product sold by the policyholder.
  • Wondering when you need to get it? The moment your tech startup goes into beta or live, you’ll require professional liability insurance.
  • Most professional liability insurance policies cover economic (financial losses) which are suffered by third-parties.
  • The most common exclusions in professional liability insurance policyare:
    • Bodily Injury (BI) and;
    • Property Damage (PD)
  • Make sure you are prepared! When you research quotes and are trying to find professional liability insurance for consultants, it’s always smart to gather your business information beforehand. You’ll save time and will be making it easier for you and the insurance provider.
  • The cost of professional liability insurance for consultants will depend on a number of factors, including your company’s gross revenue, founder resumes and financials.
  • To fully protect your commercial business, you’ll need to consider some other common policies. Some of the other common policies that consultants should consider are Commercial General Liability Insurance (CGL)Business Interruption InsuranceCyber InsuranceDirectors & Officers (D&O) Insurance, Legal Expense Insurance, Property Insurance and Contents Insurance. 
  • Finding professional liability insurance for consultants doesn’t have to be an arduous process. Planning ahead of time will make your experience a better one. Don’t forget to ask questions when you’re speaking to a licensed broker to see if they’re a good fit for you.
  • Do they answer your questions clearly and explain insurance terminology to you in a way that’s easy to understand? Are they available when you need them to be? Ask about the claim process, whether claims can be submitted online or if you’ll need to mail forms out.
  • On-going management of your policy—is there a digital dashboard that you’ll be provided to view your policy? If you purchased multiple policies, are there any available discounts? Will you have a dedicated licensed broker assigned to your business? Make sure to make a list of questions to ask so that you can address them without forgetting.

A List of Resources for Staffing, Recruitment and Employment Agencies in Canada

Below you’ll find some very valuable resources that you should bookmark. We hope you take advantage of these links. If you think something might be missing or would like to suggest anything, we’re all ears! Send them to content@zensurance.com.

Associations 

Research & Insights

Regulatory

Looking for professional liability insurance for Staffing, Recruitment and Employment Agencies ? Get your FREE quote online

At Zensurance, we make getting a commercial business  insurance quote easy. Our hassle-free, easy to use and no-jargon tool walks you through the entire process. 

By |2018-07-11T11:30:40+00:00June 21st, 2018|Business|0 Comments