There's no avoiding a hardening market, but there is a positive outlook for REC members

This is a guest blog contribution by REC business partner Marsh Commercial. 

Over recent years, we've seen a series of natural disaster losses, low investment returns, low interest rates and more recently, the COVID-19 pandemic creating increased economic uncertainty.

Furthermore, stricter attitudes to risk combined with a rise in claims have resulted in premium costs increasing and available capacity levels reducing. This means some businesses may not receive the levels of coverage they had secured previously. We are encountering an unavoidable hardening insurance market.

There's no doubt recruiters face challenging times ahead, but here at Marsh Commercial, we understand these challenges and risks. Because premiums are inevitably going to continue to increase, recruiters may find themselves shopping around on the open market for cheaper quotes rather than relying on brokers to arrange their insurance. However, not dealing with a broker that specialises in recruitment presents a risk of not only excessive premium rates but also limited benefits.

Challenging times present new risks

There's no better time to review your insurance needs. The pandemic has forced businesses to adapt: operationally and financially. When these changes don't take into account new rules, recruiters may find themselves liable for defence costs and any damage awards as a result of an error or omission – by either the recruiter's staff or the workers supplied to the client.

Recruiters supplying workers in the financial sector – accountants, for example – are at risk of liability if they haven't taken into account new rules set out by HMRC, or offered incorrect advice on applying for the likes of corporate loans, rate and rent relief.

There is a misconception that indemnity insurance covers all eventualities, but this is not always the case, there isn't a one-size-fits-all when it comes to recruitment insurance.

The good news is Recruiters Choice provides you with flexible insurance cover, complemented with a range of additional benefits at no extra cost.

Recruiters Choice offers a wide range of cover, including:

• Cyber and data cover for business interruption relating to hacker damage, cyber extortion, privacy protection and media liability up to £250,000. This is included as standard (subject to purchasing public liability or professional indemnity insurance).
• Directors' and officers' liability and corporate legal liability cover for up to £100,000.
• Crime extensions cover for claims made against you arising from dishonest acts of employees or workers supplied by you.
• Contractual vicarious liability cover not only for your employees, but also contractors supplied by you.
• Safeguarding from claims arising from allegations that workers you have supplied have committed acts of physical, sexual or mental abuse.​​​​​​​
• Medical malpractice liability cover for claims relating to medical or veterinary treatment, diagnosis or prescription by workers supplied by you.​​​​​​​
• No contractual liability exclusion.
• Crisis containment PR costs covered, should you need to manage adverse publicity.​​​​​​​
• High hazard cover for activities including oil and gas, offshore, safety critical rail work and nuclear.​​​​​​​
• All types of workers – your business will be covered for temporary workers; PAYE, zero hours, self-employed.​​​​​​​
• Driver's negligence including cover for young and inexperienced drivers over 18.

As with all insurances, terms and conditions apply.

We can't avoid the hardening market; however, with Marsh Commercial's long-standing relationships with insurers and specialism in the recruitment sector, we can negotiate competitive rates, combined with a range of benefits. We're passionate about advising, protecting and supporting recruitment firms.

As an REC member, you can arrange a free insurance health check and 10% discount off your recruitment insurance. Don't leave it to chance without checking you have the essential protection you need.

Book your FREE insurance health check today here.

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