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E&O for Staffing/Placement Agencies
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As part of the fallout in the recent economic downturn, we have an abundance of qualified workers without jobs. Many companies have begun to hire again, and several of them are utilizing the services of staffing /employment agencies. This can be a great tool not only for the hiring company, but also the applicants themselves.
At the end of the day though, employment agencies are “middle men” in the hiring process and have a large E&O exposure that should be adequately addressed. Let’s face it- carrying proper coverage just makes good business sense. The legal defense costs of a claim against a small firm alone could easily devastate the business.
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IMPORTANT NOTE:
Just the legal defense from one claim can add up quickly and financially ruin a small placement agency.
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Here’s a sample claim scenario to consider – A local banking firm hires a teller through a placement agency. Shortly after, the teller is fired for embezzlement. It is later determined that the teller had a criminal record and the placement agency failed to perform a criminal background check, which could have prevented this from happening. The bank then sues the placement agency.
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REMEMBER:
Coverage isn’t just for the large placement companies – we can get the right coverage at the right price for your clients – limits between $100,000 and $5,000,000 are available to qualified risks in most areas.
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So what is the solution? Proper insurance coverage!! And that’s where Stuckey & Company comes in. We have excellent professional liability products available from many A-rated (or better) carriers. We should be able to get ‘admitted’ products in most states. Minimum premiums as low as $500 in many states.
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DON’T FORGET:
Professional liability isn’t the only exposure to a placement agency. Many staffing firms have on-site testing for various jobs skill sets, resulting in varied GL & WC exposures – and yes, we can help with that too!
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COVERAGE HIGHLIGHTS INCLUDE:
- Many A-rated carriers availability in lower 48 states and D.C.
- May be able to group the GL with E&O in some instances
- “Duty-to-defend” coverage forms available to most risks
- Scalable limits to meet insured’s needs
- Personal Injury coverage included
- Worldwide Territory Coverage
- Extended Reporting Options
- Prior Acts coverage available
Let us help you cover your clients! We will make it happen!
Contact Chris Boylan, Professional Liability Renewal Underwriter, for applications in each state, claims samples, specimen forms, general questions, or sell sheets.
Chris@stuckey.com or 1-800-828-3452 x 35
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Earlier this month, the Dow Jones Industrial Average plummeted almost 1,000 points in a matter of minutes. Sources report a trader attempting to short-sell 16 million shares of S&P 500 stock entered a “b” for billion instead of an “m” for million. This slight human error, exacerbated by a market made more volatile by high-speed trades and automatic sale orders measured in milliseconds, caused traders to scurry and liquidity to vanish. Stocks that were selling for $40 at 2:47 pm were worth no more than a penny at 2:48 pm. The Securities and Exchange Commission (SEC) has begun reviewing the potential problems caused by high-frequency trading. Yet, the impact of human error on this volatile market is daunting.
