The Art of Negotiation
Staffing Risk Transfer & Client Insurance Negotations
While a catchy headline, I certainly don’t want to write a blog about politics, especially this week. What I would like to address is a theme one of the presidential candidates refers back to constantly. The concept of negotiation. I’ve reflected how Assurance negotiates insurance requirements and language for our clients and their customers. Of course, a third party will always try to put as much liability on their customers as possible to avoid risk/exposure, but how much is too much and where do we draw the line?
Many insurance requirements we’ve reviewed require that the staffing company either increase coverage limits or change policy language, which in turn increases premium and places more risk on the staffing firm in the event of a claim. Having a broker that specializes in staffing and one that understands the norm in terms of staffing insurance requirements is essential for not only saving premium, but also minimizing your risk to be pulled into a lawsuit. Below are some of the requirements we see that are also negotiable.
- Increasing Your General or Professional Liability Limits – Depending on your sales and the amount of limit increase, this could cost thousands of dollars. Instead, if your policy is written correctly, your umbrella sits excess these coverages, thus (in most cases) satisfying the requirements.
- Higher Cyber Limits – This has been a hot topic these days, and I recently had a request for a $10MM cyber requirement for a company that only does $5MM in sales. Usually your clients will ask all firms they work with to have the same requirements. In this example, we were able to negotiate with the company stating that the limit is bigger than the company, which saved this staffing firm $25,000.
- Waiver of Subrogation, Cancellation Notice and Additional Insured Language – I’m not going to go into detail on this blog post on what each of these means, but if you run into these requirements, consult with your broker on the correct action and the impact it has on your company.
These are just a few examples of items that are negotiable between you and your clients that Assurance sees on a daily basis. If you see a requirement you think is out of line for your scope of duty or will increase your premium dramatically, consult with your broker to determine the best course of action.
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