Untruthful Medical Candidates Could Result in Insurance Denial, Warns Homewood Insurance

Naples, FL - September 1, 2025 - Homewood Insurance Group is urging medical staffing agencies to strengthen their credentialing and screening processes, warning that failure to vet candidates thoroughly can result in denied insurance coverage or sharply increased premiums.

Recent data highlights the problem: studies show that up to 53% of job applications contain inaccurate information, while nearly 55% of Americans admit to lying on their resumes. In the high-stakes world of healthcare staffing, such misrepresentation can expose agencies to lawsuits, compliance violations, and severe financial losses.

"When an agency places an unlicensed, underqualified, or misrepresented healthcare professional, the liability doesn't just rest with the worker-it flows directly back to the staffing firm," said Ralph Schiller, Senior Broker at Homewood Insurance. "Carriers expect robust screening and credentialing. Without it, coverage may be denied or premiums may rise beyond affordability."

Insurance carriers underwrite medical staffing agencies with a sharp focus on risk management.
Failure to perform background checks, license verification, abuse registry checks, or ongoing credentialing can:

Increase vicarious liability exposure, holding the agency responsible for misconduct.

Trigger coverage denials or exclusions from professional liability policies.

Cause premium spikes, as carriers price the agency as high-risk.

Disqualify agencies from critical contracts, grants, or hospital partnerships.

Credentialing errors also have steep financial consequences: some healthcare practices lose up to $350,000 annually due to claim denials and credentialing mistakes, with monthly revenue losses ranging from $12,000 to $30,000 during delays.

"Medical staffing agencies that take shortcuts with screening are playing with fire," Schiller added. "Insurance carriers see that as a red flag. The result can be catastrophic-not just for coverage, but for the very survival of the business."

Homewood Insurance works with multiple carriers to help staffing agencies improve their credentialing standards, reduce liability exposure, and secure affordable insurance protection.

For more information, visit: https://homewood.insure/insurance-for-medical-staffing-agencies/

Homewood Insurance Group
4850 Tamiami Trail N, 3rd Floor
Naples, FL 34103
Phone: +1-947-274-3093
Contact: Ralph Schiller, Senior Broker

Homewood Insurance Group is a specialty insurance agency based in Naples, Florida, focused on serving clients in the healthcare and senior living sectors. With access to nearly 100 carriers and deep expertise in medical malpractice, general liability, sexual abuse and molestation (SAM), and cyber liability, Homewood helps clients secure tailored coverage solutions for complex risks. The firm is committed to empowering its clients with the knowledge, tools, and carrier relationships needed to protect their business.

This release was published on openPR.