This week’s inquiry comes from Norman Lieberman (comment on the Fee Collection and Client Bankruptcy post from last week):

Hi Jeff:

As a successful 29-year veteran independent recruiter, I have been following and buying your sage advise for decades. Your articles, books and materials have helped, and saved me, too many times to remember over the years. One thing is for sure, you saved me a fortune in attorney bills. So a big Thank You is due.

I recently read an article that said E&O Insurance, specific to our industry, may not protect recruiters as once thought.  Apparently some E&O policies have exclusions that are broad and hurtful to recruiters.  Also, the article warns not to compare premiums, but instead compare the Insurance companies’ reputation for denying coverage.  Even better is to have an attorney compare the policies for us.

The article scared me because I may be falsely sleeping well thinking that I am fully covered.  But, in fact, my E&O insurance may not be covering me as I thought.

So Jeff, is it caveat emptor or how do we best protect ourselves?  Where does one find out an insurance company’s reputation?  How can we best protect ourselves and be confidant that our E&O is doing what we need and had intended?

Thank you,

Norman Lieberman