WHY BACKGROUND CHECKS ARE ESSENTIAL FOR ALL EMPLOYERS

With more jobs becoming available today, there is a major problem presenting itself for employers. Employees who are applying for jobs are lying about important aspects of their lives. In most cases, the truth may be a disqualifying factor. To avoid the hassle of hiring an unfit employee, it's important to conduct a background check.

According to the ADP's 2009 Hiring Index, 46% of the 1.7 million applicants reviewed had discrepancies in their resume's employment, credentials, education or reference checks sections. In addition to this, 37% of applicants had traffic violations or convictions, and 6% had criminal charges within the past seven years. While not all applicants lie about convictions, others may fabricate details that make them look more appealing. This practice, which is commonly called resume padding, is a method used by people who aren't qualified for a position to attempt to obtain it. It's important to be able to identify both omissions and lies.

Understanding What Is in a Background Check. Not all background checks are the same. There are hundreds of online services that advertise cheap and fast background checks. However, these companies provide limited information, and often have limited access to databases that are not regularly updated. In order to get the most accurate and recent records it is best to use state resources.

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How to Perform a Background Check. Usually, the office of the Highway Patrol is the best place to begin a search. Some jobs require a prospective employee to manage a budget and handle money. If this is the case, it's a good idea to request a credit check also. It's important to have the applicant's SSN, date of birth and any last names or aliases they've used in the past 10 years. Be sure to have the applicant's approval before performing a background check. Social media sites, such as Facebook, can also be beneficial when researching a potential employee. Keep in mind that people may make fictitious profiles and claims on social media sites, so this information shouldn't replace what is available on a background check. However, sometimes discrepancies between resumes and social profiles are enough to raise a red flag against a potential employee.

Be specific in what information you decide to verify with a background check or credit check, and only perform those checks when there is a direct correlation with job duties. For example, don't request a credit check for an employee who won't be controlling a budget or working with cash. However, if an applicant will be caring for disabled individuals, it's important to verify that they don't have any past charges of abuse, assault or neglect. Always use common sense to determine which bits of information need to be verified.

Employer Reference Considerations. Verifying employment and inquiring about an applicant's work ethic with a previous employer is important. However, it's also important to make the reference call count. Never rely on the phone number provided by the applicant. Either look up the number through an online phone directory or use a reliable source to verify the number. Although it isn't common, sometimes applicants provide erroneous phone numbers that may not belong to the previous employer they listed. In some cases, employees might provide a friend's number instead. That friend will often provide a false reference to make the employee look good. Be sure to ask pointed and concise questions to the applicant's previous employer. The following questions are good examples:

• What are the applicant's strengths?
• How does the applicant deal with stress and conflict?
• In what ways could the applicant improve?
• How do the applicant's skills with other team members rank?

The best time to perform a background check is after extending an offer for employment. However, be sure to tell the applicant that their employment with the company is contingent upon them passing a background check. It's always a good idea to state upfront in the job posting that a background check will be performed for qualified applicants. This is usually effective in discouraging applicants who know they have a checkered past and intend to lie about it. Again, the most important thing to remember is to always obtain an applicant's written permission before ordering a background or credit check for them.

THE BASICS OF WORKERS COMPENSATION INSURANCE

Employers must take the proper measures to ensure workplace safety. However, there are accidents even in the safest workplaces. To be prepared for employee accidents, employers must have Workers Compensation coverage. This insurance will provide valuable benefits for the employer and the employee who sustains injuries.

It's important for employers to understand what is covered by a Workers Compensation policy. Each state has varying statutes regarding Workers Compensation, so it's important to speak with an agent to learn about individual state statutes. Each state determines what injuries are covered and to what extent. They also determine how much coverage employers should purchase. Businesses that expand to other states must consider the different rules of each state they operate in. Workers Compensation policies cover injuries and accidents that happen while an employee is on the workplace premises or away from the workplace on the course and scope of performing their duties.

Workers who are injured receive the necessary medical treatment. There are several guidelines that outline what treatments and diagnostic tests are considered as necessary. Benefits for income replacement are based on whether the employee's disability is temporary or permanent. Although some states allow the benefits to be paid for the entire length of the disability, some place limits on the amount of time that benefits can last.

Many employers wonder whether they need Workers Compensation coverage or not. In most cases, unless employees are paid on commission or they're company partners, employers need to purchase workers compensation coverage. There are some states that exempt employers with only a few workers. However, it's important to speak with an agent about individual state laws regarding workers compensation insurance.

There are individual state rules regarding where an employer can purchase Workers Compensation insurance. It is not part of a BOP, so it's necessary to purchase it in addition to this policy. Speak with our agents to learn how to get this valuable coverage.

The premiums paid by employers vary by the nature of their business. For example, employers who hire workers to do dangerous jobs must pay more for Workers Compensation insurance. If the nature of the business is dangerous and is likely to result in a serious injury or disability, it's important for employers to plan on paying more. Experience ratings can be beneficial for employers who must pay more initially but are able to maintain a low claims volume. Speak with an agent to learn how experience ratings work and how they can help premiums become lower. There are several other important aspects of workers compensation insurance that must be understood. Contact an agent to ensure that ample coverage is in place.

PROFESSIONAL ERRORS AND OMISSIONS: PROTECT YOUR PRACTICE

Professional Liability insurance funds losses caused by errors or omissions in the rendering of services. What does this mean? Professionals are human and errors do occur. In medicine and science, the client benefits from the best course of action suggested by an experienced practitioner at the time the service is rendered. The best course of action, though, has some risk of failure. It is wise to cover this potential.

Some examples of typical professional liability claims include: An attorney misses a filing date for a lawsuit and the client loses the right to sue a surgeon removes too little, too much, or the wrong tissue. A hair stylist misuses chemicals and burns the client. A computer consultant provides incompatible software, causing damage

Some examples of actual, but unusual claims: Although machinery is tagged as under repair, a building inspector is held responsible for a new system because they merely reported the tag-out rather than investigating the nature of the repair required. A real estate agent sold a home that the listing agent reported as located in the wrong school district. The selling agent did not correct the error although they were never asked to verify the information. A stockbroker advises a client to sell some stock and balance their portfolio. The client refuses and loses money. The client sues for mismanagement.

Most professional services contracts offer advice, design, expertise, politics, negotiations, or any skill associated with a particular profession. Beyond laws and regulations, professions self-govern by way of setting minimum performance and ethical standards. When these performance standards are not met, either by an error occurring or an omission of an important service duty, a potential claim results. Expert witness testimony is often a feature of litigation in these claims to determine the definition and scope of the malpractice.

Doctors, lawyers, and certified public accountants (CPAs) spring to mind when discussing Malpractice insurance, Professional Liability, or Errors & Omissions insurance. How about architects, engineers, office designers, barbers, dog groomers, bankers, clergy, web site designers, software producers, or computer consultants? Any profession that provides a service instead of a product has a professional liability exposure. Almost any product includes some element of design. So, what separates a product from a service?

A service is defined by the acts of the professional, not by the finished product or outcome. Concrete contractors are covered by completed operations insurance; construction managers who select and supervise the concrete contractor fall under professional liability. If you provide a professional service, advise clients, act on behalf of a client, or provide an outcome or consequence rather than a specified product or completed operation, you need Professional Liability insurance.

Professional Liability policies define the acts, errors, and omissions covered both in general and specifically. Restrictions or exclusions are enumerated as well. Standard forms exist for many professions; however, different forms are used and it pays to have knowledgeable advice.

Reputation creates value in any professional practice. One major difference between standard business and professional liability is the professional's right not to settle. The downside to this decision, however, is the policy limit of liability decreases for that claim to the accepted claim offer, including costs and legal fees, a very risky strategy. Claimants and their legal counsel prefer to negotiate with an emotionally distraught practitioner than a dollars and cents experienced adjuster who knows the potential court outcome.

With reputation and time away from the practice already at risk, remove the strain of total financial ruin from the equation and obtain Professional Liability insurance.