Category Public Liability

Your staffing agency is likely dependent upon a number of resources for daily operations, and thankfully there have been great strides in making these resources more accessible and effective. One example of this is the evolution of vendor management services and the way they have revolutionized staffing. Through a web portal, clients and agencies can collaborate on anything from staff training to scheduling. There are several other innovations that have improved staffing in the 21^st century, too.

New Recruiting Strategies

Recent staffing trends have led to better recruiting strategies. It’s common for agencies to utilize a phone interview to get to know a candidate prior to scheduling an in-person interview. Little shifts like this have had a big impact on operation and enabled recruiters to streamline their processes. As recruiting improves, so does candidate quality and client satisfaction.

Better Insurance Coverage

As it has grown, the staffing industry has become subject to more regulations. Though this has been great in making it safer and more fair for employees, the liabilities that result can be a pitfall. Luckily, the insurance industry has responded by offers staffing that’s just as innovative as the best vendor management services. To protect your assets and shield against vulnerabilities, invest in a policy for your agency.

Big data is a term used to describe large sets of information that can be analyzed to gain insight and understand implications. The insurance industry has been greatly benefited by big data. Insurance big data improves the process in the following ways.

1. Exposes Fraud: When a fraudulent case came to an insurance agent in the past, it was easy to miss because these shams could manipulate the rules. Big data, on the other hand, uses text mining, exception reporting, rules, modeling and database searches to more quickly and accurately identify fraud.
2. Makes Settling Claims Easier: Insurance companies have to look at a lot of data before settling claims to ensure a fair price is given. When insurance big data enters the picture, it is easier to settle claims with speed because analytics are able to calculate loss accurately.
3. Reduces Lawsuits: Oftentimes disputed claims end in litigation. Insurance companies can use big data to analyze the different claims to find out which ones are more likely to end in litigation. The insurers are then able to assign the higher risk claims to senior adjusters who may be more likely to settle the claims without the need for lawsuits.

Insurance big data can be very beneficial for the insurance company and the insured when used properly.

In the past, insurance policies such as public liability and professional indemnity insurance were written on an occurrence basis, with insurance companies relying upon timely filing and the statute of limitations to cap their liabilities. What this meant was the insurer would cover a business for negligent acts that occurred (or was filed) during the policy period. However, the face of the liability insurance industry changed when a large number of claims for personal injuries arose during the 70s and 80s. These claims resulted from chemical exposures that had taken place 20 and 30 years before the insurance company even came onto the policy. The difficulties in dealing with these long-tail claims has led to both higher premiums and an increased move by the insurance industry to claims-made policies.

Claims-Made Policies: What They Mean for You

Under a claims-made policy, the insurance company is able to cap its long-term liabilities and stay profitable. The good news is that this type of policy is much more affordable than an occurrence policy. However, the insured must pay close attention to the terms and conditions of issuance in order not to negate the coverage. Some insurance companies require notification of even potential claims. Claims reporting can be somewhat of a balancing act for companies, caught between absolute compliance with claims reporting requirements and a desire not to present as a poor risk.

Mitigating the Risk

Accepting some of the risk in-house, by having a self-insured retention, can take care of some of the smaller claims that come along. Improving your risk assessment profile by addressing internal weaknesses will also help in the claim avoidance and yield lower premiums. Finding a good insurance company, with the help of a licensed insurance agent who specializes in public liability and professional indemnity insurance, will also help. With attention to risk assessment and self-insuring part of the risk, you should find your business well-protected, while getting the best premium.

Do you find yourself staring at page after page of insurance coverage options and feeling completely overwhelmed? Whether you operate a large or a small company, you need to know the basic types of insurance coverage that your company needs in order to be adequately prepared for any unexpected situation that could potentially cause financial devastation. Public liability and professional indemnity insurance coverage is one of the more confusing types of coverage for business owners, but it also one of the most important. Here are some ways to tell if your company really needs this type of insurance.

You Provide Services to the Public

If you provide any products or services to the public, you should have public liability insurance coverage. This is because you may end up dealing with a lawsuit as the result of property damage or personal injury that is allegedly caused by your company.

You Hire Professionals of Any Type

If you hire professionals of any type to work at your company, you need professional indemnity insurance. This coverage will protect your company in case a claim is filed against any of your employees as a result of a real or perceived professional mistake.

If you want to make sure your company is not sent into bankruptcy by an unexpected lawsuit, it is well worth it to protect your company with public liability and professional indemnity insurance coverage.

photo credit: Thomas Beck Photo cc