6 Things to Keep in Mind When Choosing Business Insurance

When starting a business, it is important to consider the risks that you may face and take precautions to protect your assets. One way of doing this is by choosing an appropriate business insurance policy. There are various types of policies available and it can be difficult to choose the right one for your needs. It is essential to understand what coverage will best protect your business from potential risks. Here are 6 things to keep in mind when choosing the right business insurance policy for you.

1. Evaluate Your Business

When selecting the right business insurance policy for your company, it’s paramount to consider what type of coverage you need for optimal protection. To start, take a thorough inventory of all your assets and determine which risks are most likely to happen. This should aid in choosing the best policy that addresses each risk appropriately with adequate limits on property damage and liability exposure. Perhaps you need business liability insurance, property insurance, or a workers’ compensation policy. You can read more here about the best liability insurance companies, or do your own research to decide which type of coverage is best for your business. Moreover, you should identify specific coverage needs like vehicle insurance and professional liability.

Knowing what type of coverage are necessary will help you narrow down the best policies for your business. A lot of policies may appear to be the same, but pay attention to the fine details as these can make a huge difference in what is covered.

2. Know Your Industry

Different industries have different risks and it is essential to understand what type of coverage would be necessary for your specific industry. Talk with a professional who specialises in business insurance so that they can help you identify the potential risks of your specific industry.

Over the years, the insurance industry has developed sophisticated risk management strategies for businesses. There are policies available to help protect businesses from almost any type of risk. If you are unsure of what type of policy to choose, talk with a professional who can help you find the best option for your business.

3. Consider Your Employee Needs

If you have employees, it is important to consider their needs as well when selecting a business insurance policy. There are certain policies that will provide coverage for employee-related incidents such as injury or illness and it is essential to understand which ones are best for your company.

For example, workers’ compensation insurance is important coverage that will protect both you and your employees in the event of a job-related injury or illness. Having this type of coverage is important to ensure that your employees are taken care of if they are hurt or become ill while working for your business.

4. Check for Discounts and Incentives

When shopping for business insurance policies, it is important to search for discounts and incentives that may be available. Many insurance companies offer special discounts or incentives to businesses that purchase certain types of coverage. It’s also worth checking with local organisations or associations in case they have any special deals or discounts that could help save you money.

Over the years, the insurance industry has also begun to incentivise businesses with eco-friendly practices. For example, many insurers now offer discounts for businesses that have adopted sustainable energy-saving practices or are taking steps to reduce their carbon footprint.

5. Get Several Quotes

When searching for an ideal policy, it is recommended to get quotes from several different providers so you can compare coverage, limits, and pricing. Don’t be afraid to shop around as this will give you a better understanding of what’s available and help you find the best policy for your needs.

For instance, you may find that one provider offers a higher coverage limit at a lower rate than another. There are a lot of options to choose from and the more you shop around, the better chance you have of finding a great deal. The internet is full of providers and insurance comparison sites, so use this helpful tool to your advantage.

6. Read All Policies Carefully

To ensure that you are getting the right level of protection and coverage, it is important to read all policies carefully before signing on the dotted line. Make sure that everything listed in the policy matches your requirements and expectations. Ask questions if there is something that you don’t understand and make sure that any exclusions are clearly outlined.

If you’re trying to decide which business insurance policy is best for you, it can be overwhelming. Keep these 6 tips in mind to help make the process easier and find a policy that will provide the coverage you need to protect your company.

By following these tips, you will be able to choose an appropriate business insurance policy that meets your organisation’s needs. Don’t forget – understanding what type of coverage is necessary for optimal protection is key when selecting the right policy for your company so take the time to research your options and make sure you are getting the best coverage possible.

What Are The Insurance Products Needed By a Staffing Agency?

Like any business, staffing agencies need insurance to operate safely and responsibly, as well as protect their various assets.

There is a wide range of different insurance and policy types available that focus on protecting different elements of a recruitment business, and those operating within it. Each policy tackles a different risk or liability that staffing agencies often face. This allows for the prevention of avoidable costs and legal conflicts.

The costs of these many insurance types can vary greatly. This is why it is so important for staffing agencies to weigh their options and obtain a foundational understanding of them. This should be done prior to signing any insurance contracts.

Let’s take a closer look at the different types of insurance coverage that your staffing agency may need so you can make an informed decision.

Why Is Insurance So Important For Staffing Agencies?

In the US, the Staffing Services Industry has seen a year-on-year revenue increase of 23%. This puts the 2021 revenue status at a whopping $152 billion.

As the industry continues to grow in both volume and overall worth, staffing agencies need to place new priorities on solid insurance plans. These plans will then protect them from petty lawsuits and penalties that could jeopardize them.

The services that staffing agencies provide set them up for liability risks. Because employment and recruitment agencies act as the middleman between employers and employees, they have legal and contractual obligations to both parties. This can often lead to conflicts of interest.

Staffing insurance is the legal buffer between these three parties, which is why it’s so important. It allows agencies some legroom for when major conflicts or liabilities occur.

Keep Your Staffing Agency Safe With The Right Insurance

The risks that a staffing agency faces are dependent on the services it offers. Consequently, it is up to the owners of staffing agencies to consider what forms of insurance are most needed for legal protection.

However, there are several basic insurance types that any staffing agency would be remiss to ignore. Most states within the US require that staffing agencies carry at least workers’ compensation insurance for employees. But there are many others that serve to protect the assets and interests of everyone involved.

If you own or work at a staffing agency, it is important to become familiar with the following forms of insurance: 

1. General Liability Insurance

General liability insurance is one of the most important types of insurance for any business to buy. This is because it provides blanket protection against some of the most common liability issues that a business is likely to run into when dealing with multiple parties.

For example, general liability insurance will cover things like damages to property, advertising issues, third-party injuries, and copyright infringement.

What makes this type of insurance so valuable is its guarantee of coverage should a third party decide to sue, and compensation to the affected party for their potential losses. It also covers a business’s settlement and legal costs in the event of a lawsuit.

2. Workers’ Compensation Insurance

Workers’ compensation insurance is a must-have for staffing agencies. As they are constantly involved in and arranging employment scenarios, a lack of this coverage could have consequences. This type of insurance provides coverage for medical benefits and wage costs should an employee become injured or unable to work after accepting a job.

If a staffing agency recruits an employee to an organization but that employee ends up injuring themselves due to negligence or improper training, they may be unable to work. The employee can then hold the staffing agency responsible for their medical costs and loss of income.

However, the staffing agency won’t have to pay out if they have workers’ compensation insurance. In exchange for the relinquishment of the employee’s right to sue, insurance will cover the financial losses without costing the staffing agency an arm and a leg.

3. Professional Liability Insurance

Professional liability insurance is a form of insurance designed to protect professionals in whatever field or industry they work in. It offers protection from lawsuits, penalties, and other legal claims filed by clients.

Because general liability insurance does not protect professionals against claims pertaining to negligence, misrepresentation, or malpractice, businesses seek out professional liability insurance to shield them from these claims. Also known as Errors and Omissions insurance, this type of insurance will protect businesses or professionals that have been accused of making serious mistakes.

Within the context of a staffing agency, you might need professional liability insurance in the event of a failure to uphold industry requirements or failure to meet contractual deadlines. Another reason for this insurance is to cover the placement of an employee who fails to meet the skills necessary for completing a job.

4. Commercial Property Insurance

Commercial property insurance serves the purpose of covering repair costs for agency-owned property in the event of fire, vandalism, theft, and many other externally influenced catastrophes. Commercial property insurance is considered the bread-and-butter of business insurance options.

This kind of insurance stretches over affected furniture, fixtures, and office equipment. It also covers the general physical space that the agency occupies, but only up to the coverage limit, and minus deductibles. Agencies that rent out office space can receive coverage for any affected office contents.

Staffing agencies often have minimal property exposures, and tend to have a comparatively low risk of general liability lawsuits. This makes commercial property insurance a useful substitute.

5. Commercial Crime Insurance

It is considered pretty standard for agencies of all kinds to invest in a commercial crime insurance plan. Crime and theft are both common occurrences throughout the world. The failure to prepare for them can result in major property damages as well as financial loss.

Commercial crime insurance is designed to cover any financial or property losses that occur as a result of burglary, terrorism, forgery, computer fraud, and of course theft. Regardless of whether an outsider or internal employee is responsible for the crime.

The policies surrounding commercial crime insurance do not usually provide coverage for stolen securities or money. And, they may exclude scenarios that involve employee dishonesty. For this reason, commercial crime is of high value to any staffing agency, in particular temporary or recently founded ones.

Additional Insurance Types

Where possible, staffing agencies should consider the above four insurance policies as the basics for protecting their assets.

However, the list doesn’t stop there. Large-scale agencies or agencies with particularly valuable assets may want to consider some additional insurance plans to cover any potential threat to their business. No matter what shape or form it comes in.

These three insurance types look past the fundamentals of business insurance and into the subtle snags that can trip an entire agency up. Especially in the form of lawsuits and penalties that are difficult to shake off in the long run.

If a staffing agency has a large workforce or operates alongside multiple high-stakes industries, investing in the following three insurance types can provide necessary coverage in times of need.

1. Employment Practices Liability Insurance

Employment practices liability insurance (also known as EPLI) is a fairly recently developed form of insurance. It seeks to protect businesses from claims made by employees about the violation of their legal rights or freedoms. This form of insurance can also be useful in the instance of vicarious liability.

EPLI can protect staffing agencies from claims made by employees on the grounds of wrongful termination, sexual harassment, breach of employment contract, and negligent evaluation. They also cover failure to employ or promote, wrongful infliction of emotional distress, and mismanagement of employee evaluation plans.

There is no limit to the maximum sum that can be awarded to an employee claiming discrimination and harassment, so the financial protection provided by an employment practices liability insurance policy is invaluable. Even though it usually occurs within the context of a large corporation, businesses and agencies of every kind are vulnerable to this kind of disruption.

2. Cyber Liability Insurance

As the number of cyberattacks and data security breaches continues to rise, more and more businesses are starting to set up insurance plans that protect them from these damaging incidents. Cyber liability insurance is an insurance policy that provides financial coverage that comes as a result of a cyberattack.

When it comes to cyberattacks, virtually no business is safe. Some of the biggest, most successful brands in the world have had their data security leaked. This has resulted in mass financial loss and the additional loss of data that is essential to the maintenance of the organization.

Cyber liability insurance may not be able to retrieve lost data. But it can provide businesses with a number of coverage options that offer protection against these common attacks. Some insurance providers also provide risk mitigation services and tools to help you identify and avoid cyber threats before they happen, such as endpoint protection and security services.

3. Computers and Media Coverage

Sometimes referred to as Electronic Data Processing Coverage, computer and media coverage aims to either replace or restore lost digital assets that come as a result of vandalism, theft, and sometimes malware.

Some of the policies found in a computer and media coverage insurance plan may also cover repairs to hardware and software. Both of which can be extremely valuable to any organization.

This type of insurance is becoming less and less unusual for businesses to invest in. Especially considering the high number of businesses that rely on computers and media to fulfill day-to-day tasks and employment expectations.

Pro Tips For Getting Staffing Agency Insurance

Although obtaining insurance for your staffing agency is critical to its success, the process is often not as simple as one would like it to be. There are many legal loopholes to climb through, and being sucked into a bad deal is much easier than it seems.

Keep these tips in mind when assessing different insurance policy options:

  • Always compare quotes. The fastest way to secure a good insurance plan is to review your various insurance quote options alongside someone who understands the process on a foundational level.
  • Understand your needs. Many people misunderstand “staffing agency” for employment or recruitment agency. Even though there are definite similarities, always come prepared to explain the exact needs and expectations you have for your agency.
  • Go with an experienced agent. You don’t want to make a deal with an insurance company that doesn’t have a strong reputation. Make sure to hire an agent that knows exactly what they are doing.

Whether your staffing agency is a large, well-established company, or a small business that’s just starting out, finding the right insurance can make or break your business’ success.

Fortunately for staffing agencies, there are many reliable insurance plan options to protect your staffing agency from becoming unnecessarily involved in legal drama.

When going into the business of obtaining insurance plans, remember to identify risks with a trusted insurance broker. This way, you can get the best possible protection for your agency at the best possible price.