In the constantly changing world of employment standards and practices, it behooves vendor management services to ensure they have adequate business insurance. A good insurance company will not only offer coverage that protects your business, it will also help you understand and apply decisions made by the National Labor Relations Board and federal courts that may affect your hiring practices.
Understand the Options
There are various types of liability insurance available to vendor management services, and each should be considered for their potential use and value. Some of the options include:
- Professional liability insurance, to cover placement, work performed, and services provided
- General liability insurance, to cover property damage or bodily injury
- Errors & omissions insurance
- Employment practices liability, to protect against claims of harassment, wrongful termination, etc.
Understand the Risk
Each business has its own unique risk exposure. Your insurance company should provide you with a comprehensive analysis of your industry’s risk and potential loss to design the right business insurance package for you. It is also important to maintain current knowledge of hiring trends and issues. Employment-labor relations are always in flux. You and your insurance manager must be aware of the impact changes in the industry will have on your company. A good umbrella policy provides additional protection for unforeseen events.