Recruitment Agency Insurance – A Necessity, Not An Option

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Whether you’re an individual working from home, a specialist recruitment consultancy or a high street employment agency, in today’s litigious business world you can’t afford to be without effective recruitment agency insurance.

Recruitment is a high-pressure environment. Having to win the business of clients as well as attract candidates and then make suitable matches is fraught with potential risk. You may not want to think about it but if you do, you’ll be able to picture the scenarios all too well...

A placement doesn’t work out for whatever reason. The client is aggrieved and looking for someone to blame. If they can pin the blame on you, they will.

And if they can allege negligence on your part – you failed to carry out adequate background checks on the candidate; your professional advice was flawed – then you could easily find yourself being sued. If the case goes against you, the resulting compensation award together with the legal fees could put you out of business.

Or imagine that a temporary worker you have placed with a client makes a mistake that results in significant financial loss or damage to the client’s reputation. Or one of your own ex-employees sues you for unfair dismissal.

Once again, without comprehensive recruitment agency insurance – including professional indemnity insurance, public liability insurance and employers liability insurance – you could be facing costs you literally can’t afford.

Insurance for recruitment agencies has to be a necessity. The stakes are too high for you to view it as an option.

Not that recruitment agency insurance is just about risk management. Increasingly, companies are insisting that potential suppliers have the right insurances in place before tendering for their business. So it’s also an investment in your future growth.


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