The recruitment industry is dynamic and people driven, focussed on placing talent in the right place and keeping candidates and hirers happy. Sometimes when focusing so much on the people it can be easy to miss the small print, be that in your contracts with hirers or even in your insurance policies.
So what are the things to be mindful of as a recruitment agency, to make sure you don’t fall foul of these small print ‘booby traps’?
1) It’s best to avoid signing up to non-standard contracts, or client Terms and Conditions for the placement, without seeking some form of assistance from your broker or legal counsel. Understanding what your exposures or liability is before you’ve signed any contract is paramount, you need to make sure that your insurances will cover your exposure.
2) Do not assume that ‘cyber cover’ is as all-encompassing as you may think, there are several elements to cyber cover, such as cyber extortion, data breach notification, regulatory defence and penalties, amongst others. Ensure you know what risks are included and what aren’t.
3) Check your policy for Dishonesty cover. This is one of the biggest potential exposures for recruiters, where the dishonest acts of temporary workers can lead to potential claims. Does your insurer provide adequate cover for third party and own losses, what is the financial implication if they don’t?
4) Look out for a ‘Supplied Personnel exclusion’ endorsement on your policy. As the name suggests, any personnel supplied by you won’t be covered for any liability, this can be costly if you find out at the wrong moment.
5) Are any workers offshore? Have you advised your broker and do you have adequate cover for them?
6) Check what cover applies through the professional bodies for certain types of healthcare worker. They are not always adequately insured, and unlikely be covered for things such as Medical Malpractice which could impact your business.
7) Watch your height and depth limits for your workers - there will likely be restrictions on the cover you have which must be adhered to and can affect whether claims are paid or not.
Checking small print on contracts or even your insurance policy may be low on your priority list when there’s clients and candidates to deal with, but not doing so can mean a dent in your company finances when it comes to a claim. So be sure to seek advice if you are unclear.