Employment agencies are responsible for connecting the world’s best employees with the top employers in the world. It might seem like an easy task, but most Canadians really do not understand how difficult it can be. On top of that, there is always the potential that you’re going to match the wrong individual with the wrong company. That could lead to significant problems for both. In return, that would blow back on you and your company. This is why it is essential to invest in an employment agency insurance policy. Despite doing your very best to ensure perfection, anything can happen. Within the blink of an eye, your Ontario business could face a hefty lawsuit.
Keep in mind, an employment agency is one of the many businesses in Canada that require professional liability insurance prior to servicing the public. So you should not be surprised if your clients require you to purchase a specific limit of insurance prior to recruiting through you.
If you were hit with a liability suit, would your current insurance cover the cost? Would you be able to protect your workers? Could you still care for your family? If the answers are no, it is time to equip yourself with additional employment agency professional liability insurance. With the right insurance, you’ll be able to eliminate your worries and focus solely on matching the right people with the right companies!
Additional Coverage Options
When it comes down to it, employment agencies need insurance and they need plenty of it. As someone who is running an employment agency, you’re going to need to have some type of professional liability insurance. If you do not, you’re not going to be able to lawfully run your business in Ontario. Just remember that there may be other insurance policies that can be beneficial for your business. Some may be necessary by law, but others you may feel are necessary personally. Below, you will learn about some of the other insurance options that are available to you.
Property Exposures Coverages
Since you’re running an employment agency, there is a good chance that people are going to be running in an out of your premises. Your place of business is absolutely vital for your company and its long-term success. Property insurance can protect your company in the event of a business fire. The amount of insurance needed really depends on the overall value of your property. If your place of business is worth $100,000, it is best to acquire at least $100,000 aggregate. This will cover the costs completely.
Employee Dishonesty Coverage
You’ll also want to think about protecting your company with employee dishonesty insurance. After all, your workers are going to be working with a lot of confidential information. They may be required to handle the private information of potential customers. And, they may have access to your company’s funds and bank accounts. This insurance can protect your company from internal and external threats. While it depends on your company and its risks, acquiring at least $1 million per claim is highly recommended.
While professional liability insurance for employment agencies is great, it is not going to cover everything. This is why you may also need general liability. This type of coverage offers more protection, including liability caused by damage to someone else’s property. This coverage will also protect your company from the loss of electronic data in many cases. Behaviors and actions of temporary staff will also be covered. While it is possible to acquire more, it is recommended that you get at least $1,000,000 per occurrence and $2,000,000 general aggregate in terms of limits.
There is a good chance that your company is going to be storing your clients’ information on a server or in a database. If something goes wrong, this information could be stolen and you could be held liable. This could potentially ruin your company in the long run. Some companies have $100 million in covered for cyber liability. Since your company probably isn’t as big, you might need as much. A $1,000,000 limit per occurrence should suffice for most employment agencies in Ontario.
How much does Liability Insurance (PLI) for Employment Agencies Cost?
When it comes down to it, most business owners will do their best to minimize the costs. You should never skimp on insurance. So, how much is it going to cost? The numbers can fluctuate depending on numerous factors, including the size of your business. General liability insurance can start as low as $35 per month, but you shouldn’t stick with the lowest insurance.
- Professional Liability Insurance (E&O) – From $500 year
- General liability insurance – As little as $35 per month
- Workers’ compensation – $.75 to $2.00 per $100 in payroll
- Cyber insurance – $120 to $150 per year
- Employee dishonesty – $100 to $500 year.
Truly, there are numerous factors that can play a role in determining your overall recruitment agency professional liability insurance cost. With this in mind, the figures above may or may not be completely accurate. The very best way to determine how much you’re going to need to pay is to request a quote.
How to Apply for Insurance
Applying for Professional Liability Insurance is fairly easy. You have 3 options:
- Request a Quote by clicking here or by clicking the button below.
- Call: 1-888-480-7677 and speak to an insurance advisor regarding your business.
- Send us an email with your insurance requirements. A licensed broker will contact you shortly.
We’ll get back to you as quickly as possible!
FAQ before purchasing employment agency professional liability insurance
- How much professional liability insurance do I need for my employment agency?
- How do I get an employment agency insurance policy?
- What does employment agency professional liability insurance cover?
- What is the difference between claims made & occurrence form of coverage?
- When will my employment agency need to be insured?
- What other professions need this type of insurance?
Other useful posts you should also read
- Canadian insurance companies that provide professional liability insurance for employment agencies
- How does the claims process work if I get sued because of my employment services?
- What is the cost of employment agency professional liability insurance?
- How do I apply for an employment agency professional liability insurance policy?
- How do I qualify for coverage as an employment agency?
- What is the purpose of getting insured as an employment agency?
- How long will it take to get an insurance quote for my employment business?