As a professional recruiter, you work hard to find great candidates that meet your client’s needs. Unfortunately, being a recruiter comes with risks—your reputation, and sometimes your livelihood, is often times tied to another person.
Despite your best efforts to vet a potential candidate, that person may not work out and your client could sue you for professional negligence. The following post highlights five compelling reasons why you should consider purchasing a professional indemnity insurance policy sooner rather than later.
1. Clients May Require It.
When a client invests in your skills, they have a vested interest in ensuring you’re able to deliver. For this reason, many companies require service providers, such as recruiters, architects, marketing agencies and consultants to carry professional indemnity insurance.
Carrying this coverage also signals to potential employers that you take your reputation and business seriously.
2. If You Provide A Service, It’s Relevant To Your Business.
Professional indemnity insurance is ideal for businesses that provide advice and consultation. It protects you from common claims, such as:
- Negligence—if you make a mistake.
- Stolen or lost records or equipment.
- Dishonest candidates—If a candidate is dishonest about their experience, it will likely fall back on you for not vetting them properly.
3. It protects your livelihood and reputation.
Let’s face it—even if you’re known for being incredibly professional and detail-oriented, anyone can make mistakes. If you’re judgment about a particular candidate is off, and that person costs your client time and money, then you could be held liable.
Selecting the right coverage will give you piece of mind and can help mitigate lawsuit damages that could be devastating to your cash flow. Learn more about business and professional liability insurance.
4. Problems You’ve Probably Never Considered
In addition to covering against mistakes, professional indemnity can insure you in case of mishaps. For example, if a client is visiting your office and somehow injures himself, you could be held liable. It may sound far-fetched, but according to the latest statistics from the U.S. Department of Labor, 75.5% of workplace injuries occurred in service-providing industries.
There are many other risks to consider before deciding against coverage, such as how likely a client is to make a false claim against you, or when someone refuses to pay for services rendered. Are those risks you’re willing to take?
5. Getting Coverage Is Easy
Selecting the right plan that meets your needs is fast and simple. When reviewing your options, consider the types of coverage you may need based on likely scenarios.
Start by asking yourself a few key questions:
- What could be my worse case scenario and how much financial damage could that cause me?
- What amount of financial burden am I willing to take on?
- What are some possible mistakes that could be made, which may result in a potential lawsuit?
- Am I the only person who would be affected?
Professional indemnity Insurance will help give you the support you need to keep running a successful business. To learn more about insuring your business visit our professional liability page, or schedule a consultation with a knowledgeable expert.