RECRUITMENT INSURANCE FAQs
What insurance does a recruitment agency need?
The only insurance policy that is legally required of a recruitment agency is, if the business has employees, Employers Liability. However, clients of a recruitment agency will invariably set out that their chosen agency should have in place adequate Professional Indemnity and Public Liability coverage as well.
As with all professions, recruitment agents are expected to operate with professionalism and diligence. However, even where suitable safeguarding and quality control measures have been taken, mistakes can still happen.
By not holding suitable insurance, you may be exposing your business to claims such as:
- Legal action arising relating to the suitability of candidates placed
- Errors or omission on the part of your workers, where you are vicariously liable
- Intellectual property or breach of copyright
- Disputes relating to your business’ duty of care
Typically, the compulsory nature of Employers Liability insurance means that most firms will require a policy to cover at least their own in-house staff. In the recruitment sector, however, the ambiguity of employment status of workers may also dictate that Employers Liability also covers workers supplied by the firm.
Where there is a contract of employment between the worker and the intermediary, as in a typically umbrella operation, an Employers Liability policy will remain a legal requirement. Whilst a potential claim may be mitigated or ultimately cover by the end client, the requirement for the umbrella firm to carry Employers Liability insurance would remain, even where the worker is under the supervision, direction and control of a third party.
What is Drivers’ Negligence insurance?
Drivers’ Negligence insurance covers you in the event of material damage to motor vehicles caused by the negligent act of any temporary worker supplied by the Policyholder, for which the Policyholder is liable.
Where agencies provide HGV drivers, it is a common term of the supply contract that the agency remains liable for certain damage caused by the negligent act of the drivers.
Our Drivers’ Negligence policy protects against this exposure, and is available for up to 50 drivers (working at any one time) via our online application. A larger number of drivers can also be insured on enquiry.
Is Drivers’ Negligence Insurance a legal requirement?
While Drivers’ Negligence Insurance is not required under legislation, if you supply drivers it is not unusual for your clients to specify that you have Drivers Negligence cover in place.
Drivers Negligence Insurance is something we can include as part of your Qdos Recruitment Agency Liability Insurance.
Can I buy Cyber Cover as a standalone policy?
Qdos Recruitment Professional Indemnity Insurance includes cover for a variety of cyber risks including data protection and hacker damage. This important added cover provides additional peace of mind in an environment where cyber risks are increasingly prevalent.
We do not currently offer this cover as a standalone policy but can arrange a more comprehensive cover on request.
Do you cover vicarious liability?
Qdos can arrange cover for recruitment agencies who accept vicarious liability for the actions of the employees they place on a bespoke basis. Please get in touch with one of our experts to discuss your requirements.
Vicarious liability occurs when one party is held responsible for the actions of another. This is a common consideration for recruitment businesses, who may be contractually liable for the actions of their contractors and require insurance to cover such claims.
Policies available online are designed for agencies who do not accept vicarious liability for the actions of their workers. Larger agencies, or those who do specifically accept vicarious liability, can arrange cover on the basis that the action of their workers is insured by speaking with one of our advisors and completing a short proposal form.
