Executive recruiters or executive headhunters are professionals focusing on filling executive jobs within corporations and companies. Depending on your experience and knowledge, there is a good chance that you’ll be able to help hospitals find doctors. Furthermore, you can help businesses find good attorneys. Your job is to help people hire the best. You may specialize in one industry or another. Either way, you understand that your job is to find the best recruits. You know your duties and fulfill them better than anyone else.
Still, you have to be concerned about the future of your Canadian business. You need to make sure that it remains operational for many years to come. Acquiring executive recruiter insurance is highly recommended. With this insurance, you can shield your business from lawsuits associated with allegations of neglect, oversight, and error.
What Is Executive Recruiter Insurance?
First, executive recruiters should learn more about this insurance. What is executive recruiter insurance? Well, it is another name for professional liability insurance. This is one of the most essential insurance policies for executive recruiters. As you see, you are responsible for hiring the best employees. There is a risk that you won’t do that. The candidate you picked looked great but it didn’t turn out that way. They were awful and actually hurt the company in question.
Are you going to be held liable? Will your client file a lawsuit in hopes of being reimbursed? You won’t know until it happens. You can’t take unnecessary risks and this is why you’ll want to obtain executive recruiter insurance. Professional liability insurance provides protection from lawsuits and claims of neglect, oversight, and error.
How Does Executive Recruiter Insurance Help?
Executive recruiter insurance or professional liability insurance can help your company. This insurance specifically protects companies from allegations of neglect, oversight, error, and omission. There is always a risk that you’re going to make a mistake when searching for employees. Your clients expect you to hide the best and this may not always happen. In fact, you might hire someone who isn’t good for the company. This could lead to losses and more problems for your clients. You need to be very cautious because this could ruin your company’s reputation and bottom line.
When a lawsuit is filed against your company, you’ll want to use insurance to defend yourself. Executive recruiter insurance helps in this situation. When you’re sued for negligence or errors, you can use this insurance to recruit a powerful team of lawyers. It will help you defend your company in the courtroom and minimize or eliminate the settlement.
What Does Executive Recruiter Insurance Cover?
What does professional liability insurance cover? Will it protect your business from personal injuries and property damages? Unfortunately, it will not. However, professional liability insurance is still very helpful. It needs to be combined with GLI but both are equally important. As a recruiter, you have a lot of difficult decisions to make. You need to help your corporate clients hire the best workers. You might pick the wrong person and it could lead to financial loss for your client. Will you be able to deal with this issue without having a lawsuit filed against you?
You could but you might not. You never know. Can you afford to take the gamble? In all likelihood, the answer is no. With that being said, you should work to defend your company. Since you can’t be sure, you should shield yourself. You can do so by acquiring professional liability insurance. During the policy period, your company will be covered from claims or error, omission, and neglect. If a lawsuit is filed against your company, executive recruiter insurance will protect you.
What Doesn’t Professional Liability Insurance Cover?
Again, you have to understand the professional liability insurance doesn’t offer comprehensive protection. While it is great, it isn’t the only policy you should own. You’ll need a handful of other products to ensure that you survive any lawsuit that comes your way. Professional liability insurance will not protect your company from claims of property damage or personal injury. You’ll need general liability insurance for that. Furthermore, professional liability insurance won’t cover your equipment, vehicles, or property.
Again, you’ll need other insurance for these purposes.
Does Executive Recruiter Insurance Have Limits?
Yes. Executive recruiter insurance comes with limits. You won’t be able to use it constantly. You’ll be able to adjust the limits to match the needs of your business. Just remember that increasing the limits will cause your premiums to climb higher as well. Nevertheless, it might be worth it. This is something you’ll need to figure out for yourself. If you need more insurance, you should get it. It is wise to spend time consulting with a professional insurance agent because they’ll know more about your company’s risks.
Either way, executive recruiters insurance has two limits. First and foremost, your insurance will have a per occurrence limit. This means that you’ll be limited for each claim. You might have a per occurrence limit of $1 million. This means that any single claim can reach $1 million. You’ll also have an aggregate limit. This covers the entire policy period. If you have a $3 million aggregate limit, you can spend a total of $3 million. It could be 3 $1 million claims.
What Other Insurance Will An Executive Recruiter Need?
Executive recruiters need to go above and beyond to shield themselves from all potential risks. Having a comprehensive insurance plan can reduce the risks. It is wise to work with a professional agent so you can piece together a reliable insurance plan and protect your company from all potential problems. Besides having executive recruiter insurance, you’ll also need general liability insurance, business contents insurance, cyber liability insurance, and others.
Below, you’ll learn more about these insurance products and everything they cover.
What Is General Liability Insurance?
First, you’ll want to obtain general liability insurance. GLI is very important because it gives your company added protection. Customers are going to visit your office regularly. Therefore, you have to understand the risks involved with that. While visiting you to discuss business, your clients might get injured. A slick parking lot could cause your client to fall and break their tailbone. Alternatively, there is a risk that their vehicle will get scratched or damaged. You can’t be positive that this will never happen. And, you have to understand that a lawsuit will follow the injury. General liability insurance is designed to limit the risks. With this insurance, you can take care of your client.
Whether it is an injury or property damage, general liability insurance will be there to defend your company.
Business Interruption Insurance For Executive Recruiters
Executive recruiters should consider signing up for business interruption insurance too. This insurance is vital since you never know when something bad is going to happen to your place of business. After a frightening storm, you may find that your business property has been destroyed. At the very least, a tree came down and broke a window. Now, you aren’t sure how you’re going to pay for the repair. Will you be able to find enough money to pay for the repairs? With business interruption insurance, you won’t have to worry about it.
This insurance helps you deal with such problems. It’ll help you pay for rent at a temporary location. Plus, it can help you recover the money you’ve lost while your office is closed.
Business Contents Insurance For Executive Recruiters
As an executive recruiter, you use a lot of equipment to search for good employees. You likely use email to communicate with these potential employees so you can learn more about their qualifications. You’ll also use your computer and webcam to conduct interviews. When something happens to your equipment, your business will come to a standstill. Can you possibly replace this equipment without ruining your bottom line? You might not be able to find the money to do that.
Business contents insurance for executive recruiters can help. This insurance will help you replace the stolen equipment so you can continue serving your clients.
Cyber Insurance For Executive Recruiters
Finally, executive recruiters need to obtain cyber insurance. This is one of the most important insurance policies for executive recruiters. When you’re working with potential clients, you’re going to store their information in online databases. You need to protect this information. Cyber insurance can help you deal with issues that occur after a data breach.
You biggest asset in life is your earning ability. If you are unable to work, you will need to rely on either your savings or borrow money to sustain your lifestyle. When these unfortunate circumstances occur, dependents and spouses are also impacted financially and emotionally.
Disability insurance coverage will provide you a monthly income benefit, usually totaling 70% to 80% of your income, when you are unable to work for a period of time due to injury or illness.
Types of disability insurance
- Long-Term Disability Insurance (LTD)
- Short-Term Disability Insurance
- Key Person Disability Insurance
- Self Employed Disability Insurance
- Mortgage Disability Insurance
- Temporary Disability Insurance
- Supplemental Disability Insurance
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FAQ before purchasing liability insurance
- How much professional liability insurance do I need?
- How do I get a liability insurance policy?
- What does professional liability insurance cover?
- What is the difference between claims made & occurrence form of coverage?
- When will I 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
- How does the claims process work if I get sued because of my professional services?
- What is the cost of professional liability insurance?
- How do I apply for a professional liability insurance policy?
- How do I qualify for coverage as a professional service provider?
- What is the purpose of getting insured as a professional?
- How long will it take to get an insurance quote for my business?