Administrative Management Insurance

What You Need to Know about Administrative Management Insurance

Administrative Management Insurance

Administrative management services companies offer consulting and administrative staffing services to private corporations and government agencies. 

Administrative management consultants are entrusted to provide consultation and fill positions that can help their clients perform better in either short-term or long-term scenarios. But if the results you promise do not materialize, the staff you provide does not perform adequately or as promised, or you provide erroneous advice that has negative financial consequences for a client, your administrative management business can face grave financial consequences as well. 

You can protect your business with the right business insurance and the help of an independent insurance agent

Why Do You Need Administrative Management Insurance? 

Administrative management companies help their clients grow their profitability while maintaining their staffing flexibility. Your administrative management company may help clients through both short- and long-term administrative staffing needs, providing skilled, trained, and experienced staff that meets the client’s needs. 

Your consulting and staffing services may involve areas such as these below.

  • Administration and executive assistance
  • General clerks
  • Secretarial workers
  • Records management
  • Management assistants
  • Customer service
  • Office planning
  • Human resources

In your role as an administrative management consultant, you are likely tasked with finding ways to help your clients reduce costs or improve efficiencies with optimal and flexible staffing levels. While your services can lead to improvements and increased profits for your clients, failing to provide services or making errors of any kind can have negative consequences.

You need to have a plan in place protect your business from risks such as lawsuits, property damage, accidents, theft, weather, and other unforeseen events. A comprehensive business insurance plan is one of the best ways to protect your business when things go wrong. And since your firm is not the same as the firm down the street, your policies should be tailored to your unique needs. 

What Does Administrative Management Insurance Cover? 

You have a relatively low risk for property and bodily injury losses on your premises. But you still need to protect your business and your personal assets in the event that someone is injured on your property, or your business sustains physical damage or a property loss. 

Commercial general liability (CGL) insurance: This offers broad coverage for lawsuits related to third party bodily injury and property damage. For an administrative management service, this might mean:

  • A client, vendor, or delivery person slips and falls on your business premises
  • You or an employee damages a client’s property 
  • You are accused of false advertising, slander, or libel

CGL insurance covers the costs of medical bills and replacing damaged property, as well as your legal defense if you are sued. If you are required to pay a settlement or judgment as a result of a lawsuit, your general liability policy will pay up to the limits of your policy. 

Commercial property insurance: This protects your commercial property, whether it is a building that you own or the contents of your office space (computers, office furniture, supplies, etc.). If your property is damaged by fire, weather, theft, or vandalism, your business property policy will pay to repair or replace it. 

Business interruption coverage: This valuable coverage pays for ongoing expenses (rent, salaries, etc.) if you are unable to operate or must temporarily relocate after a covered loss (e.g., a fire). 

Why Do You Need Professional Liability Insurance? 

Professional liability (or errors and omissions) insurance provides protection for you if a client sues you for negligence or other wrongdoing related to your work. Professional liability policies provide coverage for these issues. 

  • Actual or alleged errors
  • Omissions 
  • Professional negligence 
  • Breach of duty 
  • Misleading statements 
  • Claims resulting from the performance or non-performance of professional services

You’re hired to use your expertise to positively impact a client’s business, either by recommending changes to processes and procedures or by providing short- or long-term administrative staff. Any mistake that you make can have negative consequences for a client’s profitability. 

This may mean failing to perform adequate background checks on administrative workers that you place with your clients, or recommending an employee who turns out to be unqualified for a position. Either of these scenarios could lead to a financial loss for your client, and a lawsuit for you. 

While your client can simply fire you and walk away, if they perceive the damage done to be great enough, there is a good chance they will sue you for damages. If you were sued for professional negligence, would you be able to pay for all of the costs to defend yourself? Even if you know you have not been negligent, you will be faced with attorney fees, court costs, and perhaps even large settlements or court-ordered judgments. Where will you find the funds? Will you be able to continue to operate?

Professional liability insurance covers your defense costs, including attorney fees and court costs, as well as settlements or judgments that you are required to pay. Insurance companies offer a variety of specialized policies that are customized for the particular risks faced by certain professionals.

Talk to your independent insurance agent about customizing your professional liability policy for the specific risks that you face. 

Why Do You Need Cyber Liability Insurance? 

Your business likely handles a lot of confidential information for both your clients and thousands of administrative employees that you place with them. What if that information were exposed due a breach of your computer network or website? Imagine the ripple effect that such an event might have. How many businesses and individuals might be susceptible to identity theft or other financial losses?

Cyber liability refers to a range of potential liability exposures that can occur while using, storing, or transferring data electronically for business purposes.

Any business that handles electronic data — especially personally identifiable information about its customers — is particularly susceptible to cyber threats. If you are sued because of a data breach or another cybercrime, cyber liability insurance can help you cover certain costs, such as these below. 

  • Your legal defense, settlements, and judgments 
  • Public relations expenses
  • First-party coverage for damaged equipment, lost information, and digital assets (immediate customer and business needs)
  • Third-party coverage for customers, partners, or others if you are sued for a data breach that was caused by your actions or negligence

Cyber liability coverage can be added to a commercial general liability policy, or it can be a customized, stand-alone solution. Work with your independent insurance agent to make sure it addresses the exposures you have. 

What Other Insurance Policies Do You Need? 

Your independent insurance agent can help you decide if you need additional business insurance, such as these.

How Much Does Administrative Management Insurance Cost? 

The cost of administrative management insurance depends on several factors, including the size of your business and the types of policies you need to cover all of your unique risks. 

With so many variables (e.g., number of employees, physical assets of varying types and values, the location and size of your building or office space, the types of services you provide, the potential for errors and omissions), business insurance costs will vary among administrative management companies.

Find and Compare Quotes

An independent insurance agent can work with you one-on-one to determine the types and amounts of coverage you need to protect you from a variety of costly problems. Your agent can get quotes from multiple insurance companies so you can evaluate the cost and coverage options and make the best choice. 

Benefits of an Independent Agent

Our agents simplify the search process for finding the right administrative management insurance. They’ll walk you through the handpicked policy options and explain the details and options.

Most importantly, they’ll be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately. 

The Lowdown on Online Quotes

Online quotes can be tempting. They are fast and easy to get — but are they accurate? And are you getting quotes for the right coverage? For business owners, choosing speed over accuracy can cost you.  

Online quotes can’t and don’t see the whole picture. They can omit important coverage that will leave you devastated if something unexpected happens. And they can leave out cost-saving opportunities that an agent can help you take advantage of. 

Instead of getting an online quote, find an independent insurance agent now, and get one-on-one consultation and affordable options for the best coverage for your unique needs. 

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TrustedChoice.com Article | Reviewed by Paul Martin

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