Recruitment Insurance

Understand recruitment insurance and why your agency needs cover?

 About Recruitment Insurance for Staffing Agencies

Do recruitment agencies need insurance?

When running a recruitment agency the business and it's directors are faced with a number of risks. With the right recruitment insurance in place, you can protect the business from allegations of wrongdoing whether they are ffrivolous or not. The threat of expensive legal action can be mitigated with recruitment insurance designed to meet your needs. It's not uncommon for simple mistakes to have significant consequential losses in the recruitment sector when carrying out due diligence on your candidates, even though you seek to limit your liability under contract. There is also the increased exposure of handling confidential and personally identifiable information against a backdrop of cyber security threats. There are a range of insurance covers that recruiters should consider to protect their financial interests, below we take a closer look:

Recruitment Professional Indemnity Insurance Professional indemnity

The most important insurance for recruiters is professional indemnity, which can cover claims arising from range of civil liabilities including negligence, breach of professional duty, breach of contract, defamation, breach of privacy, employee dishonesty and intellectual property infringement. Civil liability insuring clauses ensure the greatest protection against claims for compensation from your candidates and/or the companies you work with.

Recruitment D&O Insurance Directors and officers

For any director at a recruitment agency it is important to protect your personal assets. Directors and officers insurance provides an important safety net should you be personally named in any litigation. Not everyone appreciates that individuals can be held personally liable to fund a legal defence, pay damages, or pay regulator fines. A D&O insurance policy can reduce the financial risks associated with taking up leadership roles, by offering insurance to safeguard the personal assets of management.

Recruitment Cyber Insurance Cyber insurance

Recruitment agencies can handle a significant amount of personally identifiable information and ensuring you are adequately protected with cyber insurance in the event of a data breach or cyber attack is an important consideration. With so much of recruiters business managed with online systems, what would happen in the event you were locked out and demand to pay a ransom? Cyber security insurance offers a wide range of protections under one policy that can guard against cyber security threats. 

Recruitment Office Insurance Office insurance

Whether you operate from an office or work from home, you will still need to purchase employers liability insurance and public liability insurance to protect the business from bodily injury and propert damage claims. Recruitment insurance is usually packaged to provide these covers for a small additional premium. Office contents and electronic equipment away from your premises can also be included. Speak to one of our account executices about your requirements and we can find recruitment insurance to meet your needs.

How much does recruitment insurance cost?

The answer will depend upon a number of factors, most notably the size of your firm, which sectors you operate (for example domiciled care and drivers will carry additional risk), permanent verses temporary staff, whether you retain contractual liability for direction, supervision and control, largest contract size, which territories your turnover is generated, whether staff are placed overseas, and are you required to agree contracts with USA jurisdiction. Premiums can range from £300 per annum to £250,000+ per annum, we can cover all types of recruitment agency, regardless of size or sector, from micro and SME, through to corporate agencies.


 Do we need recruitment insurance?

Do recruitment agencies need specialist insurance?

Discuss your recruitment insurance needs with one of our experts, to ensure the solution you arrange is adequate to protect your agency from future claims. Recruiters are exposed to unique risks that should be taken into consideration:

 Recruiters vicarious liability insurance

1.) Vicarious liability

Ensure you have protection whereby you can be held accountable and financially libel for the actions of the candidate you placed with your client.

 Recruitment cyber insurance

2.) Cyber insurance

Third party liability will typically be provided under your professional indemnity, but 1st party cyber coverage is becoming increasing important.

 Drivers negligence insurance

3.) Drivers negligence

If you are supplying drivers into businesses this is an important extension that should be included on your professional indemnity insurance.

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Find recruitment agency insurance that is designed to meet your business needs

What types of recruitment insurance cover is typically purchased?

Recruitment insurance is usually a package of liability and property insurance, the main types of cover are detailed below. Additional protections, such as personal accident and legal expenses can also be included.

Professional Indemnity

Professional indemnity insurance can protects recruiters from claims made by candidates or hirers for financial loss or damage caused by services you provide. The coverage can also protect against allegations of copyright infringement, defamation, libel and slander.

Public Liability

Public liability insurance which protects against any loss, damage or injury caused to a third-party. This could occur when a member of staff goes for a coffee with a candidate.

Employers' Liability

Employers' liability insurance which protects you against any damage or injury to a member of staff. Slips, trips and falls remain the most common type of liability claim for an office based risk.

Directors and Officers

Offers financial protection against the directors and senior managers against claims made against them individually. Ensure your personal assets are protected from a range of alleged wrongful acts such as fraud, financial losses or bankruptcy.

Cyber Insurance

Cyber insurance can offer protection to your recruitment business against cyber-attacks, extortion, business interruption, GDPR notification expenses, and specialist support to get your agency up and running as soon as possible.

Property Damage

Provides cover for the cost of repairing and restating your property after an insured incident and can also include buildings insurance, contents insurance, portable equipment insurance, and business interruption insurance.

Choosing insurance for your recruitment agency

We would always recommend that you buy recruitment insurance based on the cover rather than price. However, that being said we can provide access to some very competitive premiums to manage your costs.

The cost of recruitment insurance depends on the cover you chose to take out, how much of each cover you buy i.e., the limit of indemnity, the number of staff you have, the size of your business, area of speciality, and your claims history.

For example, if your recruitment agency specialises in supplying top executives into the venture capital sector on high salaries your professional indemnity insurance is likely to cost more than if you place manual workers into smaller firms.

 How much does recruiter insurance cost?

What additional insurance for recruiters is available?

With a wide range of insurance availbale to recruiters it's best to talk to one of our account executives about your needs.

Talk to an expert about recruitment insurance that can protect your business when you need it most