Insurance division for HR Firms - A corporate insight
Genius Consultants Limited
One of the largest Recruitment, Staffing & HR solutions Organization for the past 32 years.
An independent HR consultant has many types of insurance needs and options. A consultant working full time and without the usual fringe benefits provided to an employee would usually want to obtain health (medical), short- and long-term disability, accidental death(Only Death & Partial disablement), and life insurance. Organizations may also want to purchase business-related insurance, including property and personal liability, commercial auto, business interruption and workers’ compensation in states where it is required .
Why do HR consultants need insurance?
The intrinsic essence of HR firms lying with mankind, recruiting talent or implementing new policies, HR consultants are in demand as companies across the spectrum seek help in improving employee relations and company culture. But this scenario may lead to higher risk as more client imply more risk, to normalize the risk HR firms required insurance benefits which may decrease long term cost of the firm .
What type of insurance HR consultants required?
Business module of HR firms majorly require following type of insurances for a smooth business operations:
Why Health Insurances required in HR firms?
Over the year the demand for corporate health policies increases significantly. Use of health insurance secure associates from health hazard and in medical emergency. In many cases where employees are engaged in high risk area, firm can take a corporate policy which may support associate in any medical emergency.
Why accidental Insurances required in HR firms?
In post pandemic situation when on field works are resumed, then HR firms may stretch their wings for resourcing in that specific sector. In case of high risk areas such as Mining ,Heavy machine operator ,Chemical manufacture etc. But this contain high risk for associates ,any type of hazardous condition may lead legal litigation for principal employer. To avoid this company can take Accidental Insurance which normalize the risk of associate as well as employer.
Why Term Life Insurance required in HR Firms?
Term life insurance can provide extra coverage for any unfortunate demise of associate in work premises.
What are the types of Business insurance HR consultants required?
As mentioned above, risk of business increases with Client engagement which lead HR firms to take various type of Business Insurances.
Some of the majorly required business insurance descriptions are mentioned as follows:
General Liability
General Liability insurance covers basic HR consultant risks, such as client property damage and bodily injury. Bundle with property insurance for savings in a business owner’s policy.
Professional Liability
Professional Liability also called errors and omissions insurance, can help cover legal expenses if an HR consultant is sued for a mistake or accused of professional negligence.
Workers’ compensation insurance
Workers’ compensation insurance is required in almost every state for HR consulting firms that have employees. It can cover medical bills for work-related injuries.
Business owner’s policy
A business owner’s policy, or BOP, combines general liability insurance with commercial property insurance, typically at a lower rate than if the policies were purchased separately.
Fidelity bonds
Fidelity bonds, also called employee dishonesty bonds, provide reimbursement if one of your employees steals from a client. They are often required by client contracts.
Cyber liability insurance
This policy helps HR consultants survive data breaches and cyber-attacks by paying for the cost of notifying affected clients, legal expenses, and other related costs.
Above discussion clarify the role of Insurance in HR business. This is basically a multidimensional perception which is required to run a smooth HR operation.
Author:
Prabir Kumar Chakraborty, AGM, Legal