Why is business insurance for recruitment agencies so specialised? Aside from the usual business insurance requirements such as public and employers liability insurance, employment, recruitment and executive search agencies are also responsible for managing candidates' confidential personal information, including background reference checks.
The level of responsibility that a recruitment or executive search agency carries in relation to its candidates and placements, their personal details and need for confidentiality, means that the potential for mistakes is high. Whilst claims for negligence, defamation or breach of confidence against recruitment consultants are rare, it is worthwhile at least considering the implications for your business if a case was brought against your business.
What business insurance do I need as a recruitment consultant?
The recruitment agency business insurance offered by our specialist brokers provides the widest range of cover your business requires, including:
- Public liability
- Employer's liability
- Product liability
- Legal expenses insurance
- Office insurance
- Cyber insurance
- Directors and Officers insurance
- Professional indemnity insurance
- Personal accident insurance
Are my placements covered under my business insurance?
Unless you have come to a special arrangement with your business insurer, your cover usually extends to your business only, not the candidates who you place with your clients. This means that while you're insured against claims of negligence in cases where you have made errors or omissions in your work, if one of your candidates turns out to be a failure in their new role and your client decides to sue your business for the candidate's mistakes, there is no cover in force.
You can extend your insurance policy to include this type of cover, which includes not only your own negligence but also those people who you place. Depending upon the terms and conditions of your contract with your clients, this might be a worthwhile addition to your business insurance as a recruitment consultant.
If you work from home as a recruitment consultant, as more of us are nowadays, consider also the implications for your household insurance and working from home insurance.
Quotes are available for most types of recruitment agencies and recruitment consultants, executive search, staff agencies and temporary and permanent staff placement agencies. There is no obligation and you will be able to discuss with an insurance broker the levels of business cover most appropriate to your recruitment agency.
If you operate as a recruitment agency or other staff placement business and would like to talk through the options available to you for your business liability insurance, simply complete the brief online form and a specialist insurance broker and an expert in recruitment agency insurance will contact you shortly.