Recruiting talent involves building relationships with experienced professionals. While most demonstrate the trust you place in them, unexpected incidents can and do happen. Your insurance package should include abusive acts liability to protect your firm against major financial losses. This short guide explains what you should know about this coverage.
What Abusive Acts Liability Covers
Staffing abusive acts coverage handles a wide range of issues. These include allegations of misconduct and resulting damages from such third-party claims:
- Illness and disease
- Physical injury
- Mental/emotional trauma
- Shock or fright
Typical expenses paid by abusive acts policies include investigations, counseling and public relations. While these policies cover third-party allegations of sexual misconduct, they aren’t limited to these types of claims. To apply for coverage, you’ll be asked for several documents such as your employee handbook and client service agreements.
Choosing Your Coverage
Understanding risk is essential for any company that provides services, especially to vulnerable groups of people. These typically include childcare providers, skilled nursing facilities, houses of worship, sports teams and other nonprofit groups. However, any organization may be impacted by abusive acts claims. Staffing firms’ abusive acts liability specifically applies to companies sending employees or contractors to work at clients’ sites. For best results, work with an insurer specializing in this type of coverage