25 fact-filled articles
to help improve your performance
Tips for Recruiters
Table of Contents
Strategy & Tactics
Make Placements --
Voice Mail &
E-mail: Eight Simple Rules
Job Orders --
Better, Faster, Smarter
How to Switch Desk Specialties
Who Makes the Most
Before You Leap
How to Add Value, Not Redundancy
Counteroffers: Can You Spot the
Resume Makeovers: Quick Tips
Is There a MAGIC to Closing?
Finding the Right Recruiting Script
Storyboarding for Maximum Impact
How to Stimulate Candidate Referrals
Expand the Supply of Candidates
with Your Candidates?
The Power of Interview Preparation
Control: The Key to Recruiter Success
How to Fight the Counteroffer Bug
You’re Worth the Money You Charge!
Negotiate for Higher Recruiting Fees
Anti-Discount Tactics for Recruiters
For Candidates &
Graceful Exits for Job-Changers
Advice for Engineering Candidates
What’s Your Capture Strategy?
Q & A
to Your E-mail Questions
Bill Radin answers letters from recruiters around the world.
Insurance to Protect Your Business
By Bill Radin
through minefields every day. But nothing compares to the devastation of
being sued, which can put you out of pocket, out of business, or worse,
in the slammer.
My wife's ex-husband was a doctor. His medical practice hired a
bookkeeper who, before she was finally caught, embezzled over $20,000.
She went to jail.
Attorneys for the medical practice discovered that the staffing firm who
referred the bookkeeper had failed to perform a criminal background
check on the bookkeeper prior to the placement. Since the bookkeeper had
spent all the money she stole, the doctors sued the staffing firm and
were awarded $20,000 in damages.
In a highly celebrated case a few years ago, an IBM employee was caught
stealing trade secrets and was fired. IBM promptly sued the recruiter
who referred the candidate. The plaintiff's attorneys found a
discrepancy on the candidate's resume, which showed employment at his
previous job to be 26 months, instead of 25. When the case went to
trial, the jury found the recruiter guilty of professional
misrepresentation and awarded IBM $1 million in damages.
How would you handle a lawsuit?
Litigation Happens, So Protect Your Assets
There are two types of insurance, property and liability. Property
insurance covers your office, furniture, equipment and supplies. Most
policies will also pay a certain amount to cover the cost of recovering
or rebuilding your data files and business records, should they be
destroyed or stolen. Some business policies also contain an umbrella
rider to protect you from slip-and-falls or other physical mishaps that
might affect your business visitors.
The insurance you should be most concerned with is business liability,
also known as errors-and-omissions (or simply "E&O"). As the name
implies, an E&O policy protects you from (or minimizes your exposure to)
liability resulting from your professional work, such as candidate or
client misrepresentations or malfeasance, inadvertent non-compliance
with regulations, or other types of misjudgment or honest mistakes you
might make while conducting business.
E&O policies are very specific in the way they're underwritten, so when
you apply, you'll need to state with great accuracy the exact nature of
your personnel consulting business. For example, a policy written for
temporary, contract or light industrial placement is very different than
one written for permanent placement or executive search. In
addition, your coverage is usually limited to the time frame in which
the policy is in effect. In other words, your policy will not cover
"pre-existing" or "post-existing" conditions—events that occurred before
or after the policy's coverage period.
Very few insurance brokers or companies offer (or know anything about)
E&O insurance, so shop carefully. The broker I use is Bradley & Parker,
which is listed on my Resources
page. Bradley & Parker represents underwriters that specifically offer
E&O insurance to recruiters. The policy premium is based not only on
the type of business you operate, but also on your annual revenues.
If you're an owner,
manager or solo operator, I would strongly recommend you consider this
type of insurance for your business. When it comes to lawsuits, the more
protection you have, the better.