Insurance Question

I started my own recruiting company about 6 months ago. We focus in the healthcare industry and only work on permanent placements. We have both General Commercial Liability as well as Prefessional Liability (errors& omissions) insurance. I thought we signed up for more then enough coverage however one of our clients is requiring us to have considerably more Professional Liability insurance then what we do. Can anyone tell me what the standard coverage is for a permanent staffing company? Thanks.

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Permalink Reply by Matthew Kazmierczak on February 10, 2009 at 2:59pm

KC,

Standard coverage is 1 million aggregate and should be plenty for perm staffing. How much do you have? Feel free to e-mail directly at mattk@recruitingassurance.com.

Matt

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Permalink Reply by Maureen Sharib on February 10, 2009 at 3:03pm

They always ask that. Push back.

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Permalink Reply by Matthew Kazmierczak on February 10, 2009 at 3:43pm

For your own sake it is more important to have a higher aggregate for E&O Liability than General Liability. This covers legal costs whether it was something that is frivolous or not.

Maureen Sharib said:

They always ask that. Push back.

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Permalink Reply by Shannon Myers on February 10, 2009 at 4:06pm

I would discuss with your attorney and the insurance carrier what they believe your needs are. An agent who specializes in the staffing industry should be able to guide you through your different options.

I only work healthcare as well. I've found that the higher amounts are more applicable for contract hires but larger employers add the same amount across the board whether perm, travel agency or contract recruiter. If it is a healthcare employer you may want to reaffirm with them that you only place perm positions as many of the other firms they deal with may be a contract agency/perm placement and is this case for requesting a higher amount.