Quick Guide to Help Background Screening Firms Select the Right Insurance Policy
A Quick Guide to Help Background Screening Firms
Select the Right Insurance Policy to Meet Their Needs
Background screening is a highly litigious area of business and having the right insurance coverage in place will not only help you sleep better at night, but also help protect your business.
The number of lawsuits brought under the Fair Credit Reporting Act (FCRA) was the highest on record at the close of 2019. FCRA litigation increased by 8.7 percent year-over-year, with 4,163 claims filed through October 2019, according to data-tracking firm WebRecon LLC.
According to Good Jobs First, a 22-year old non-profit based in Washington DC focusing on government and corporate accountability over the last decade, employers and background check companies have shelled out more than $325 million to settle related litigation.
A good insurance policy can mean the difference between continued existence or bankruptcy, or at least the difference between a profitable year and a highly unprofitable year.
The purpose of this Guide is to help you towards selecting a better insurance policy.
Content: Michael Burke, FCRA insurance expert, Rooney Insurance Agency, Inc. and Scott Paler, Chair of the Background Screening Practice Group, Attorney & Partner DeWitt LLP
W. Barry Nixon, PreemploymentDirectory.com
- Why is it important to have a good Errors & Omissions (E&O) insurance policy and how do you find a good policy?
- What is the #1 policy item for screening companies to consider when evaluating the quality of an E&O Policy and how much coverage is sufficient?
- Which common claim “exclusions” in an E&O insurance policy should concern a screening company the most and what other parts of the policy really matter?
- Can you negotiate with insurance companies on the terms of an E & O policy?
- If an insurance company is providing coverage for a CRA, can the CRA still use its regular attorney to defend it in a lawsuit?
- In what situations have you seen an insurance company deny coverage for a background screening company?
Email wbnixon@PreemploymentDirectory.com to request more information about the Best Practices for Selecting a Background Screening Firm Guide