Recruiters Professional Liability Errors and Omissions Insurance for Recruiters
Why do you need this?
Quite simply to provide you with financial protection in the event of a lawsuit alleging negligence in connection with the service you provide.
As Recruiters are generally contracted by the employers not the applicants there is a degree of reliance placed on the professional activities of the recruiter.
Employment contract disputes may often involve the recruiter if the recruiter has drafted the agreements. Lawsuits alleging negligent hiring are on the rise.
A typical allegation of negligence against a recruiter is the failure to properly screen a candidate. We have seen situations where a recruiter has placed a person who has gone on to embezzle funds from the new employer. In some instances it has been proven that the new employee has a history of such activity and the allegation is that the recruiter should have known about it but failed to do a proper background check. If the allegation is proven true damages must be paid. Even if untrue, legal costs can be extremely expensive. Far more expensive than the cost of insurance.
With the job market in its current state it is best to make sure you have adequate financial protection.
For a no obligation quotation - download the application form here
Complete and fax back to 480-393-4284 or e-mail to apps@redlionins.com
Red Lion regularly secures liability insurances for a growing number of staffing and recruiting firms.
Increasingly, personnel firms are finding they are required to appropriately address their business risk. Unable to waive E&O insurance requirements from contracts they must often provide proof of insurance to their clients.
We see many firms seeking insurance for the first time and others who are seeking to maintain their insurance coverage at reasonable or reduced cost.
Red Lion works with a number of underwriters at premier insurance carriers in the USA and at Lloyd’s to obtain broad coverage at a competitive price.
Proper insurance is always cheaper than the cost of any claim.
For a quote contact us or complete and fax back the application form
The following article has been provided by our underwriters at WorldWide and highlights an issue of interest to all staffing and recruitment firms with respect to minimizing risk.
Red Lion Insurance LLC
Telephone: 704.737.2175
Fax: 480.393.4284
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