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Recruitment agency insurance

Join our community of recruiters who get comprehensive cover at a competitive price.

Specialist insurance for recruitment agencies and staffing businesses

We find you the right level of insurance cover for a range of risks and liabilities that your recruitment agency may face in your day-to-day operations.

The specific cover may vary depending on the insurance policy and your particular needs. The common areas of protection you’re likely to need are: public liability insurance, employers liability insurance and professional indemnity insurance.

Join us at our Recruitment Resilience event:

4:00pm - 6:00pm | 14th May | Marsh McLennan, Tower Place East, 3 Lower Thames St, London EC3R 5BU

Why choose us for your recruitment agency insurance?

We’ve been providing insurance solutions for recruitment businesses for over 40 years, so we understand the unique challenges and insurance risks you face within the recruitment sector.

We make it our business to help protect you, so insurance is one less thing for you to worry about. And, because we believe ‘one-size-doesn’t-fit-all’, we created ‘Recruiters Choice’‒ cover that’s tailored to risks frequently faced by recruiters.

We’re passionate about advising, protecting and supporting recruitment businesses, just like yours.

Our aim is to provide you with flexible insurance cover, complemented with a range of additional benefits at no extra cost.

Get recruitment agency insurance now

Get in touch with a recruitment insurance expert. We’re always on hand to support you.

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REC Members

We're the REC's exclusive insurance broker. Find out more about the unique benefits we offer to REC members.

Industry insights for the recruiter

As the recruitment industry has adapted to new ways of working, this guide explores the issues, offering advice and insight to help your recruitment agency prosper through these challenging times.

Customer typing on laptop computer

Recruiters choice: you said - we listened

We're here to help you, which is why we've worked with a leading insurer, to develop Recruiters Choice.

"This policy offers a broad range of cover, tailor-made for the sector. It gives recruitment agencies the confidence that they are getting an insurance solution that works for them." Peter Stoll, Director, Marsh Commercial

Recruitment freelancer talks through risk with recruitment insurance specialist

Freelancers choice

We know your clients are increasingly insisting their contractors arrange suitable insurance cover. In partnership with a leading insurer, we offer an insurance package developed exclusively for freelance contractors working through recruitment companies. Freelancers Choice is ideal for a wide range of manual occupations.

Umbrella clients looks online for specialist insurance

Umbrella scheme

Designed for umbrella companies and companies offering accountancy and payroll services, Umbrella Choice also provides insurance for CIS, single person limited companies and other self-employed contractors.

Trade credit insurance

Non-payment can be a significant risk for any business trading on open credit terms. Trade credit insurance helps mitigate this risk. It can cover any business dealing on credit terms, whether supplying goods, providing services or operating in a contracting environment. This is available for the whole of your turnover, or specific named clients.

Frequently asked questions

Usually when Class I HGV drivers are supplied and the hirer requests you to have the cover. However, it does not cover road risks required by law. These are still the responsibility of the legal owner or registered keeper of the vehicle under their normal motor cover drivers' negligence insurance cover is limited to a specific amount eg. £10,000 per claim, and subject to a limit of £50,000 in the year. The cover could be affected by the age, experience, or convictions of the driver, so it is vital such details are investigated before the driver is supplied. Remember it is not essential to cover every driver on your books, only those supplied on contracts requiring drivers' negligence cover. Most likely the answer is no. You would usually require a separate, dedicated cyber liability policy for this. It would provide more relevant cover, and could also provide cover for other cyber risks including cyber extortion, cyber business interruption , and social engineering risks (fraudulent impersonation). It is the extension of your policy to cover the actions of the worker you supply, as if the temporary worker was your employee. Usually the demand for this is created by the hirer's non-standard terms and conditions. So, it is important to check with your broker that there is no contract liability exclusion, as without removing the exclusion it would rule out the extension of cover. Firstly check the contractor has their own policy, that it is fit for purpose and that they maintain it for the duration of the contract. Secondly, ask for a copy of their schedule of insurance, and ensure it is renewed if it expires during the contract. As your company name is on the contract with the hirer, the hirer will likely pursue you in the first instance when there is a negligent act, error or omission by the contractor you supplied that costs the hirer money. Furthermore, can you be certain that the contractor has bought adequate insurance cover for themselves? For instance, have they
  • paid their premium?
  • renewed their policy?
  • got an adequate indemnity limit on their policy?
  • where required, extended their cover for off-shore work, rail or drivers' negligence?
  • not cancelled their policy after commencement of the assignment?

If yours is a new recruitment business, it’s a good idea to get your insurance pinned down early – even before you submit your first tender. That way, you’ll be able to find the cover best suited to your business needs and ensure that you’re covered for all your work right from the get-go.

For established recruitment businesses, it’s a similar story. Don’t leave getting alternative renewal quotes until too late as you’re unlikely to get the most favourable responses from insurers at the last minute.

Quite simply, it’s never too early to start considering your recruitment agency insurance options. As a recruiter, it’s 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.

Some policies specifically exclude these types of risks, so you need to ask insurers to extend the cover, which will usually be an additional cost. It can't usually be purchased as a stand-alone cover. It is usually available as an extension to a public liability insurance policy.

There are a number of typical pitfalls that all recruitment businesses may fall into when it comes to insurance, but the most common mistakes are:

  • Leaving your recruitment agency insurance cover to the last minute: Leaving it late could see you rushing into policies without first checking that they’re suitable for your business. As a result, you could be left with gaps in your recruitment agency insurance policy that can leave you exposed at the worst possible time.
  • Failing to seek advice from a recruitment agency insurance adviser: Recruitment agency risks can be wide ranging and complex, from potential liabilities to data breaches and cyberattacks. It’s crucial to understand these risks before buying insurance. An expert broker can work with you to make sure the recruitment agency insurance you buy is suitable for your business and provides the right protection.
  • That the personal services company contractors supplied will carry their own insurances, and that they will be adequate for the contract. As the recruiters name is on the contract with the hirer, they should protect their own risks first and then, insurers can try to recover the loss from the negligent contractor if possible.

In all the stress of running a recruitment business it can be easy to slip into the trap of purchasing your recruitment agency insurance online for the sake of ease. However, online business insurance policies are generally only designed to cover standard risks, so purchasing your insurance online will rarely give you a policy suited to all of your business needs. Online insurance policies will often exclude cover for personnel supplied under contract, so where you accept hirers’ terms and conditions, an extension of cover is required (see vicarious liability cover above).

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

If you’re starting a recruitment agency from home, there’re a couple of other things to consider when it comes to your recruitment agency insurance arrangements:

  • When operating your business from home you’ll need to let your home insurer know, as this is considered a ‘material fact’ and will need to be disclosed. You may otherwise run the risk of invalidating your home insurance.
  • If you’re operating your business using a personal computer which is not ‘company owned’, you’ll need to make sure it’s covered by your home insurance.
Employer's liability usually provides cover for UK nationals, applicable under UK law. For non-UK nationals, they can be covered under the policy dependent on their duration of stay in the UK. UK nationals working overseas are covered by their UK policy.

Employers liability insurance: It’s a legal requirement for recruitment agencies with one or more employees to possess employers liability insurance. This cover helps protect your business by covering the costs in case an employee is injured or falls ill while working for your agency.

Public liability insurance: In the event a member of the public sustains bodily injury, death, or experiences property loss or damage, your business could be held legally responsible for any resulting claims. Public liability insurance financially safeguards your agency in these situations.

Professional indemnity insurance: We strongly recommend that recruitment agencies offering direct services or providing advice to clients take out professional indemnity insurance. This type of cover assists in covering the costs associated with claims for breach of duty, errors, omissions, or negligent advice that may result in financial losses for your clients.