Recruitment insurance for TEAM Network members

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.

Employers 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.

If a business has volunteers, family members are volunteering or helping out without formal employment, they may not be covered under the employers' liability insurance, but it could be wise to consider coverage for them as well.

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.

Legal expenses insurance, also known as legal protection insurance, helps with the costs of legal matters.

If you have a legal problem, the insurance company will help pay for the legal costs involved. This can include things like paying for a lawyer, court fees, and even for experts who might be needed for your case. Some policies might also cover the costs of mediation or arbitration.

Whether or not you need legal expenses insurance depends on your own situation and how comfortable you are with taking risks. Legal disputes can be expensive and time-consuming, so having this type of insurance can give you peace of mind and protect you financially.

To figure out if legal expenses insurance is right for you, it's a good idea to talk to an insurance expert. They can look at your specific situation and give you advice based on your needs.

A "To Whom It May Concern" certificate of insurance is a document that provides proof of insurance coverage to a third party. This type of certificate is often requested by individuals or organisations that need verification of a business's insurance policies, typically for purposes such as contracts, leases, or compliance with regulations. 

It is important to note that a certificate of insurance is not a contract and does not alter the terms of the insurance policy. It merely serves as evidence of coverage and does not guarantee that a claim will be paid.

The TWIMC Certificates have to be manually generated and in adherence with the levels of cover that you have purchased and are available upon request. Should you wish to receive a TWIMC, please contact us on 0330 173 3105.

Your Sum Insured will normally be the gross amount covered under a particular section of cover such as Contents. Where the cover is Liability, you will find the Sum Insured is replaced with an Indemnity Limit. The indemnity limit is the maximum amount you can claim under the insurance during the annual period of cover. It is important to understand that Insurers will cover you either for Any Claims Made or on Aggregate. Any Claims Made will mean that you are insured up to the indemnity limit and you can make as many claims as long as they do not exceed that limit. Aggregate on the other hand is where this limit is reduced each time a claim is made.

For example you if you hold £1,000,000 cover and have it on Any Claims Made basis, you can claim as many times as you need as long as the claim does not exceed £1,000,000. If you were to have it on an Aggregate basis and were to make a  £750,000 claim, you would only have £250,000 cover left.

Should you wish to discuss this in more detail or to check if any of the above applies to your policy, please contact us on  0330 173 3105.

Our portal provides 24/7 access to your account and policy documents.

The portal enables us to be more environmentally friendly as we reduce the amount of printed policies and adopt a digital approach.

To access your documents, simply log into your Account, click on "Your Policies" and then select the "View" button  on the policy. From here you can download the document if needed.

Please note that under your account, there is a button titled ""Documents"". This button is for uploading documents and not for accessing your policy documents.

Log-in to the portal.

Yes. All new policies sold online and renewals can be paid for by Debit and Credit Card. Some policies have an option to pay by finance which is offered via Close Brothers Premium Finance. 

Whilst not offered online, some Insurers may also offer a direct debit. Please contact us if you wish to learn of different methods of payment and whether Direct Debit is offered.

Marsh charges a fee to cover the administration of the policy for setting it up, either via the phone or via our quote and buy website, renewing it, issuing documents and referrals to the insurer where applicable. The fee will normally be added to the policy total and can be paid at the same time via BACS or Card. If the policy is set up by Direct Debit, you may be invoiced the fee seperately.

Our policy on charging fees can be found in our Terms of Business.  You will receive a copy of our Terms of Business if you take out a policy, or you can request this by contacting us on 0330 173 3105.

Yes. You can manage your policy renewal online. We will inform you by email within 28 days before your renewal date and upload all your renewal documentation onto the portal for you to review.

If you have not heard from us prior to the renewal, please check your documentation carefully in case there has been a change to your circumstances to prevent accidental underinsurance or a gap in cover.  

You can also make payment online for your renewal by card and where applicable by Premium Finance or Direct Debit. If you had paid your previous years policy by Direct Debit, please contact us as it is not uncommon for renewals on Direct Debits to renew automatically.

Please don't assume your policy has been renewed until you have received confirmation in from us. 

If you are concerned about your policy, please call us prior to the date of renewal and one of our Team will be happy assist you. 

Unfortunately you can not make changes online. If you need to make any changes to your policy please contact us on 0330 173 3105.

Any cancellation will also need to be handled offline. Please note that all policies are contracts and there may be stipulations that could affect any refund amount due. Such examples include

• Any claims made within the period of insurance (excluding claims made in previous years unless made under Professional Indemnity or claims that have been settled as non fault or where the claim has been settled with no payment being made)
• The Insurers terms and conditions stated within the Policy Wording states that any cancellation in cover are non refundable. 
• Some Insurers may place a condition that if a refund is below a set amount, there will be no refund due to processing fees.

Should you wish to discuss this in more detail or to check if any of the above applies to your policy, please contact us and one of our Team will advise you accordingly.

The knowledge that experienced claims professionals will support you is just as important as the policy cover.

Our dedicated in-house claims team will be by your side, fighting your corner from start to finish. We promise to be there when it matters most.

Make a claim.

Alternatively you can call us on  0330 818 7677, and speak to our team of experts who will be on hand to provide the best solution and guide you through the next steps. 

Should you have any further enquiries, call an one of our dedicated team experts now on 0330 173 3105.