Background Checks Reduce Insurance Costs
Jun 30, 2016
Companies and organizations perform background checks for different reasons, and usually none of those reasons are to save money on their liability insurance costs. Nevertheless, performing thorough, best practices background checks should result in lower liability insurance expenses. However, it is important for companies and organizations to be proactive by contacting their insurance company to obtain their reduced insurance premiums.
The more common reasons for background checks usually involve the following:
Employee Screening – Protecting customers and employees, and shielding businesses against negligent hiring and retention liability.
Volunteer Screening – Safety of the organization and its clients, members, donors, and employees.
Country Club Membership Screening - Safeguarding their members and employees.
Franchisee Screening – Assessing the credit and financial capacity of franchisee applicants and protecting the franchise brand from individuals with a dangerous or undesirable criminal history.
Tenant and Resident Screening – Evaluating credit and eviction history and ensuring the safety of the residential community.
Although the common reasons listed above are all valid, the ability to save money on liability insurance expenditures is an extra benefit that should not be ignored. However, it often requires contacting not only the insurance agent, but also getting the insurance underwriting department involved to obtain a reduction in your company's or organization's liability insurance premiums.
By being proactive, as so many of my clients have successfully done, your business can, too, save money on its liability insurance expenses by performing thorough background checks – whether it is employee screening, franchisee screening, country club membership screening, volunteer screening, or resident and tenant screening.
Posted by: Rudy Troisi. President, Reliable Background Screening.