Insurance for IT staffing Companies
Human Resources is undergoing rapid and significant change. There was a time when HR was viewed as a support function that delivered employee services, but now, HR is required to lead the digital transformation of their businesses.
There is no doubt that automation enables HR to spend less time managing repetitive manual tasks and more time adding strategic value to their organisations. HR automation is not just about time efficiencies, but also about more holistic business benefits like predictive analytics, candidate experience and employee engagement. The analytics generated by HR automation systems can provide comprehensive insightful data that enables organisations to shift their focus from retrospective reporting to predictive people management.
What risks can be covered in Professional Indemnity Insurance policy?
In the world of Human Resources, nothing is worse than having to deal with liability issues and risks — especially when they could have been prevented. The Human Resources industry is constantly shifting, which is why it is important to stay up to date on the new and changing laws and legislations.
Information Technology (IT) staffing agencies are familiar with their clients’ requirements for insurance coverage, and know that they have the insurance to get the business. But you may wonder if all that coverage is really necessary.
- Your client’s greatest risk in hiring you is that your mistakes could spawn a lawsuit or financial loss. For example, if your staffing firm places an information technology subcontractor on a job, and that individual makes a fraud that wipes out crores worth of client data, your client can claim the error was your fault and expect you to compensate the company. Without liability insurance, IT staffing agencies can expect costs to mount quickly.
- Your clients expect qualified personnel to meet their temporary, contract or direct hire staffing needs. If placed personnel engage in inappropriate or illegal behaviour in the workplace or fail to meet client performance expectations, your staffing agency may be held accountable.
Placement: This involves failure to providing wrong or improper workers, failure or improper screening, and failure or improper testing. In addition, there is a much-often overlooked placement exposure that involves a worker bringing a lawsuit against the staffing firm for allegedly misrepresenting the company with which he or she was placed.
Typically, clients want their IT recruitment agencies – as well as the information technology subcontractors those companies hire on their behalf – to carry some or all of the following types of coverage:
General liability insurance
General liability insurance for IT staffing agencies covers damage to property or injury to people. Client companies often require all of their vendors – including IT staffing firms – to show proof of general liability insurance. In some cases, the mandate is driven by the client’s risk managers, who seek to reduce the company’s risk of financial loss due to lawsuits.
Any systems integrator you place on a job could accidentally damage hardware, cause a short or put a foot through a drop ceiling while pulling cable. Even a software developer, software engineer or programmer working at home could accidentally spill a drink on a laptop or drop a server in his or her possession.
When a client goes after one of your information technology subcontractors for compensation, you’re likely to be held responsible as well. IT staffing firms with liability insurance from a quality insurance agency are protected from the financial fallout that could result.
Professional liability insurance
Professional liability insurance for IT recruitment agencies is like malpractice insurance for these firms and the information technology service providers they place. Also known as E&O insurance, it protects your IT recruiting agency from liability arising from errors and omissions that you or your information technology subcontractors may make on the job. Clients require it because they know that people make mistakes.
- A manufacturer needed several additional workers for a six-week period to fill a large production order and a local staffing firm provided temporary workers to meet the manufacturer’s needs. During the six-week period, inventory audits showed a significant increase in missing goods. A shift supervisor eventually caught one of the temporary workers stealing inventory. The criminal investigation revealed that the worker had a criminal record that included theft and embezzlement. The manufacturer sued the staffing firm for misrepresenting the background of the worker and demanded reimbursement for the stolen goods.
- A staffing firm was hired to provide a client with temporary personnel experienced in data entry. Over the course of several days, the firm sent personnel with the requested experience and the client dismissed almost all of the individuals, contending that they lacked sufficient skills and processing speed. The client terminated the contract early and demanded compensation from the staffing firm for lost revenues, alleging that the failure to provide personnel with the requested qualifications caused the client to miss an important deadline and forfeit a performance bonus. Coverage Features
Workers compensation insurance
Every employer is responsible to provide a safe and hygienic working environment for their employees. Accidents to employees during their course of employment can result in financial damages to both the employee and the employer.
What is a Workmen Compensation Policy?
The Workmen Compensation policy provides for required protection to employees’ against all accidents resulting during their course of employment. This insurance policy helps to pay for work-related injuries and occupational illnesses without the intervention of a lawsuit.
Why to purchase a Workmen’s Compensation Policy?
An employer is liable under law towards the employees in respect of any injury or occupational disease arising out of and in the course of employment.
The employers’ legal liability may arise under the following conditions:
- Negligence in failure to use reasonable care and skill in the provision and maintenance of suitable, safe plant and safe place to work.
- Personal injury caused to workmen by accident arising out of and in the course of his employment.
- If the workman contracts any disease, specified in the Act (Workmen Compensation Act, 1923) as an occupational disease, the illness is deemed to be injury by accident arising out of and in the course of the employment.