If you’re in the recruitment sector you will, at some point, need to organise your company insurance. You might only consider doing this when you tender to win your first contract. However, it’s a good idea to sort your insurance as soon as you start working. There are many options out there and these invariably lead to questions. What insurance do I need, and what’s the difference between all of the policies on offer?
Buying insurance online
If you take the option to purchase your business insurance online without seeking advice from a broker, you’ll likely end up with an office policy. Such policies are designed to cover a standard office, from an estate agent to a solicitor. They don’t cover your specific industry risks.
What non-standard covers might you need?
Some claims may sit outside of any ‘standard’ covers. These might include an end hirer passing the blame onto you for the actions of temps or contractors you’ve supplied them with. A specialist recruitment policy should include cover such as vicarious liability to protect you in this scenario.
Additionally, your broker should be able to advise you on the covers needed in your particular sector. For example, for recruiting drivers you might require driver’s negligence. If providing care staff, you would need domiciliary care cover. Also, now the threat of cyber-crime has become a prevalent risk for recruiters, you may require a form of cyber and data cover /cyber liability.
It is also a good idea to consider directors and officer’s insurance. As a director or officer within your recruitment company, this should cover the legal costs of defending yourself against claims from third parties. Specifically, in regards to allegations made against you whilst carrying out your duties as a director or officer of the company.
What are the standard insurance covers for recruitment consultants?
This will cover you for claims made against your company for negligent acts, errors or omissions. Whether by you or your staff during the course of your daily activities. Should your client require you to cover the acts, errors or omissions of any temps or contractors that you place with them, this is called contractual vicarious liability.
Provides cover in the event of third party bodily injury or property damage, leading to claims for compensation or damages. This can cover your placed temps or contractors should they cause injury or damage to third party property or persons whilst on the job.
If you employ any staff it is a legal requirement* to have employer’s liability cover in place. This provides a similar level of cover to public liability but protects your staff, and you, in the event that they are injured in the course of their working duties.
Whilst online policies can cater for the more basic needs of a business, it pays as a recruiter to make sure you speak with a broker. One that has the experience and understanding of your industry. That way they can advise what the best insurance solution is to suit your particular needs.
To find out more, visit https://www.rec.uk.com/jelf
*Unless exempt, refer to the Employers Liability Act 1969.