Burand’s Agency E&O Blog: Tip #30

Felony Background Checks. An important step in hiring people.

If an employee has a felony conviction and the agency has not obtained the proper waiver from their state’s insurance department, the agency may be violating the Violent Crimes Act. Some agency owners mistakenly believe their state’s licensing department always conducts background checks. Quite often the state does not conduct this check. They may ask the question on the license application, but if the person misrepresents their past, often they will get away with it. Their misrepresentation may not mitigate the agency’s liability. Obtain the proper legal advice from your attorney to run background checks on all employees and potential employees. If someone does have a felony, then verify with your state insurance department what must be done for them to work in your agency and obtain the proper waiver.