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Recrutiment & Employment Confederation

Why do recruiters need recruitment insurance?

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Guest blog by REC-accredited partner Marsh Commercial.

Recruitment agencies and recruitment consultants are exposed to many risks when placing permanent and temporary staff into new roles.

A client claiming you've been negligent when undertaking reference checks on a candidate, an employee injured at work or a cyber-attack leaking personal candidate data. The risks are wide-ranging, and so are the types of insurance cover available to protect against them.

What is recruitment insurance?

Whether your recruitment business is well-established or new to the market, it's essential to consider the insurance cover you may need. Standard policies may not provide the specific cover to protect against the risks you face. For example, if your office is home-based, your home contents insurance will not include your work-related laptop. If you place temporary staff, you may be regarded as their employer, making you liable for any negligent actions.

Having the right insurance in place to protect your business is crucial:

  • professional indemnity to cover costs of settling or defending a claim
  • liability cover to help protect your business, colleagues, and contractors
  • cyber insurance to protect against hacker damage and cyber extortion
  • protection in the event of a public relations crisis, should you need to manage adverse publicity
  • directors and officers liability and corporate legal liability cover up to £100,000.

Recruitment insurance explained

We've put together a guide to recruitment insurance. Taking you through the types of insurance cover available for recruitment firms will help you understand what's right for your business.

Download the free guide

For more information on insurance visit or call us on 0330 818 7634. 


This is a marketing communication.

Recruitment and Employment Confederation (REC) is an Introducer Appointed Representative of Marsh Ltd and Marsh Commercial is a trading name of Marsh Ltd. Marsh Ltd is authorised and regulated by the Financial Conduct Authority for General Insurance Distribution and Credit Broking (Firm Reference No. 307511). Copyright © 2022 Marsh Ltd. Registered in England and Wales Number: 1507274, Registered office: 1 Tower Place West, Tower Place, London EC3R 5BU. All rights reserved.


This is a guest blog contribution for the REC website. The views expressed by guest writers reflect the individual's personal opinions.

A recruiter’s guide to insurance

This guide explains the different types of recruitment insurance available to help you decide which is right for your business.