Background checks impact insurance premiums

It’s no big secret.

 

We’re big fans of background screening. And it’s not just because of the protection it offers for companies who use it professionally. It’s also because of the benefits it brings to employees. Background screening helps create safer, more productive work environments when it’s put it to work in positive ways.

 

But did you know screening can also impact companies’ insurance rates?

 

Whether or not you choose to background check your employees may affect your Crime and Directors & Officers Liability insurance policy premiums. Here’s how.

 

Insurance companies usually look for the level of reference checks, criminal background checks, drug tests, credit checks, and work references. (All of this depends on the position of the employee.) Typically, the more checks performed by the employer, the greater the credit that’s usually applied toward the premium. Minimal or no checks usually result in a rating debit and may limit who is willing to undertake the risk.

 

In order to have access to insurance companies with the best ratings and benefit from a lower premium, companies shouldn’t do just any background check. Companies need to consider having a compliant employment screening program.

 

What’s the key to a compliant screening program? We believe one key is finding a professional partner who also makes compliance a top priority. This partner should support compliance with the Fair Credit Report Act (FRCA) along with state and local laws that impact background checks. A compliant screening program from start to finish not only promises professional results, but also helps find the right person the right way.

 

Looking for a company that offers state-of-the-art screening services plus compliance support backed by decades of industry experience? At ClearStar, our mission is empowering companies to find solutions that fit their business model. Call today to put our cutting-edge technology and decades of experience to work for you!

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