Employment placement agencies that specialize in hiring allied health care professionals and placing them at various healthcare institutions or hospitals are usually in high demand. And as you might expect, the pandemic drove that demand upward in the last two years.

Allied health professionals are a distinct group of health professionals who diagnose, treat, and rehabilitate people. There is a broad range of professions within this group, for instance, they may be audiologists, radiographers, dental hygienists, occupational therapists, or respiratory therapists. According to the University of Toronto, the most in-demand allied health care professions include diagnostic medical sonographers, medical laboratory technologists, occupational therapists, physiotherapists, and radiological technologists and therapists.

Regardless, medical recruitment and staffing agencies help healthcare institutions find these highly sought-after professionals. However, these medical staffing agencies should take a close look at their existing business insurance policies since an employer can be vicariously liable for the wrongful acts of anyone representing them. In this case, it’s because a health care worker who is placed at a medical facility is the responsibility of the staffing agency. Therefore, the staffing agency can be held liable for its contracted health care workers’ actions.

Concerned business owner

What Is Vicarious Liability?

Employers’ vicarious liability is when a business owner is held financially liable for the damages caused by the actions or inactions of anyone representing their company. It is known as a form of “strict liability” – when someone is liable for damages regardless of the intent.

What Kind of Insurance Will Protect a Medical Recruitment and Staffing Agency from Vicarious Liability?

Protecting your business from vicarious liability typically involves two types of coverages that are adapted to include it:

  1. Commercial general liability (CGL) insurance: Also referred to as ‘slip-and-fall’ insurance, CGL covers your business’s day-to-day operations.
  2. Errors and omissions (E&O) insurance: Frequently called professional liability insurance, E&O insurance covers negligent acts, errors, failing to provide a service as promised and product failures.

Whether you run a recruitment and staffing agency or another kind of business, all employers should be mindful of any acts of people representing them that may lead to either a lawsuit or reputational risk.

When purchasing an insurance policy to protect your business, speak to a licensed broker about the risks you face and know your policy’s coverage limit. It’s the one way you can ensure you have adequate coverage and take steps to minimize your risk.

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