Recruitment Agency Insurance

As with any business, insurance is an important element of a recruitment business’s risk management approach.

Beyond basic commercial realities, recruitment businesses also need to have a close eye on their contract terms – there will typically be strict requirements around the scope, nature and limits of the insurance policies that must be held.

Recruitment agencies typically need:

• Professional Indemnity Insurance – Professional errors or omissions, which lead to claims for damages being brought against you, regardless of best intentions or strong practices.
• Public Liability Insurance – All commercial entities owe a duty of care to people and property that they come into contact with in the course of their work, and damage to third parties can be caused under the most innocuous of circumstances.
• Employers Liability Insurance – any business  employing staff is legally required to hold Employers Liability. 

Recruitment agencies must also take time to understand their insurance requirements in respect of the workers they place – this is referred to as vicarious liability, and can often become the responsibility of recruitment businesses under contract.

In addition to the policies noted above, recruitment businesses will also need to give consideration to the general business exposures, and consider appropriate insurances for  property, contents, motor, and the like.

For more information or a bespoke quote for your recruitment agency insurance, get in touch with our team on 0116 478 3390 or click here to book a call

If a recruitment agency employs any staff, Employers Liability insurance is a legal requirement.

For businesses providing pure recruitment services, it's unlikely that Employers Liability insurance will be required for the workers they place. If the worker is under the supervision, direction and control of the hirer, or is bona fide self-employed, the responsibility for these workers will usually fall to other parties.

There are some circumstances, however, where a recruitment business has a responsibility to insure placed workers under an Employers Liability policy, and any recruitment business should take time to understand their exposure and arrange cover accordingly.  

Qdos can arrange cover for recruitment agencies who accept vicarious liability for the actions of the employees they place on a bespoke basis. Please get in touch with one of our experts to discuss your requirements.

Vicarious liability occurs when one party is held responsible for the actions of another.  This is a common consideration for recruitment businesses, who may be contractually liable for the actions of their contractors and require insurance to cover such claims.

Policies available online are designed for agencies who do not accept vicarious liability for the actions of their workers. Larger agencies, or those who do specifically accept vicarious liability, can arrange cover on the basis that the action of their workers is insured by speaking with one of our advisors and completing a short proposal form.

Qdos Recruitment Professional Indemnity Insurance includes cover for a variety of cyber risks including data protection and hacker damage. This important added cover provides additional peace of mind in an environment where cyber risks are increasingly prevalent.

We do not currently offer this cover as a standalone policy but can arrange a more comprehensive cover on request.

Drivers’ Negligence insurance covers you in the event of material damage to motor vehicles caused by the negligent act of any temporary worker supplied by the Policyholder, for which the Policyholder is liable.

Where agencies provide HGV drivers, it is a common term of the supply contract that the agency remains liable for certain damage caused by the negligent act of the drivers.

Our Drivers’ Negligence policy protects against this exposure, and is available for up to 50 drivers (working at any one time) via our online application. A larger number of drivers can also be insured on enquiry.

While Drivers’ Negligence Insurance is not required under legislation, if you supply drivers it is not unusual for your clients to specify that you have Drivers Negligence cover in place.

Drivers Negligence Insurance is something we can include as part of your Qdos Recruitment Agency Liability Insurance.