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Insurance essentials for your recruitment business

Every business has its priorities for what is considered ‘business critical’, unfortunately insurance isn’t always at the top of that list! However, leaving it to the last minute could leave you with gaps in your policy. With so many different options and packages out there, how do you know what cover is essential for your business?

Typical insurance mistakes

There are a number of typical pitfalls that all recruitment businesses may fall into when it comes to insurance. The first being; rushing into it. And the second and third; failing to seek advice from an insurance adviser.

When to start looking for cover

  • Leaving your insurance cover to the last minute could see you rushing into policies without first checking that they’re suitable for your business. 
  • If you are a new recruitment business it is a good idea to get your insurance pinned down early – even before you submit your first tender. That way, not only will you be able to find the cover best suited to your business needs, but it will ensure that you’re covered for all your work right from the get-go.  
  • If you are an established business, don’t leave getting an alternative renewal quote too late. You’re unlikely to get the most favourable responses from insurers.

 

Where to look for cover

In all the stress of running a recruitment business it can be easy to slip into the trap of purchasing your business insurance online for the sake of ease. However, online business insurance policies are generally only designed to cover standard risks. Purchasing your insurance online will rarely give you a policy suited to all of your business needs. 

In order to get the most effective insurance for your recruitment business, it is important to speak to a broker who understands your industry risks and can give you expert advice. 

What should you look for in your recruitment insurance policy?

An experienced broker can help you create a specialised policy to protect your business against additional, specific risks. 

Below are just some of the additional types of cover to consider:

  • Vicarious Liability
    Protects you should claims be made against you for the actions of third party temps or contractors.
  • Cyber and Data Cover/Cyber Liability
    To help protect your business against the financial and reputational impact should your business suffer a cyber-attack or theft of data. 
  • Driver’s Negligence
    For businesses specialising in driver recruitment, provides cover should the supplied driver damage the vehicle being driven.
  • Domiciliary Care Cover
    Cover for businesses specialising in supplying staff who care for people who still live in their own homes, but who require additional support with household tasks, personal care or any other activity that allows them to maintain their independence and quality of life.
  • Director’s and Officer’s Insurance
    This provides protection for your management level staff. It protects them in respect of the legal costs for allegations of committing a wrongful act whilst employed by the company. 

What are the standard insurance covers for recruiters?

Not all of the above options will be relevant for every recruiter. However, there are some types of cover which are considered essential, whatever your recruitment specialty.  

  • Professional Indemnity
    Protection for claims made against your company for negligent acts or errors made by you or your staff. However, this is only relevant for full-time staff. For claims against temps or contractors provided by you, you would need to have Vicarious Liability cover, as outlined above.
  • Public Liability
    Covering you in the event of an accident or injury caused to a third party or any property damage leading to claims for compensation. This policy includes cover for your placed temps or contractors.
  • Employer’s Liability
    Under the Employer’s Liability Act 1969, it is a legal requirement for all employers to have Employer’s Liability cover in place. Similar to Public Liability, this cover is designed to protect you and your staff in the event of accident or injury as a result of your day-to-day working duties. 

It’s never too early to start considering your insurance options. As a recruiter, it is likely that your business will benefit from cover outside of standard policies. Make sure you speak to a broker who specialises in your industry, to ensure you have the right protection for your business. 

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