aQmen Underwriting are providers of RecruiterCover and Technical Underwriting Manager Gary Chambers guides us through the risks to be aware of, and the cover that may be required, when working with recruitment business clients.
It’s not uncommon for recruitment agencies to be insured with standard office policies; if the recruiter only places permanent staff, then an office package may be suitable, but if the recruiter is involved in placing temporary workers the Liability sections will not provide adequate cover in respect of the contingent and front-line liability risk to which they will be exposed.
It’s for this reason that a package policy that has been specifically designed to protect recruiters against the risks they face whilst carrying out their day to day business may be the better option.
Contractual and Contingent Liability Cover
If the recruiter places temporary workers, there will always be a need to have contingent Employers’ and Public Liability cover in respect of those temporary workers. The temporary workers will not be an employee of the recruiter or the hirer of the temporary staff, so in the event of injury the recruiter’s insurance may be called upon. The recruiter may also be supplying the temporary workers under a hirers contract which could make the recruiter completely responsible for any injury to the temporary worker.
The recruiter could also be held responsible for any injury or damage caused by the temporary worker, so the Public Liability cover must be written in a way that protects a recruiter should a claim arise.
Professional Indemnity and Vicarious Liability
A standard Professional Indemnity policy will only protect the recruitment business in respect of the negligent acts, errors and omissions they make whilst conducting their day to day business as a recruiter.
More and more hirers contracts are making recruitment businesses responsible for the negligent acts, errors and omissions of the temporary workers when they are carrying out their duties at the hirers premises. To ensure that the recruiter is suitably protected the Professional Indemnity cover needs to be extended to cover any vicarious liability for the actions of the temporary workers they provide.
This highlights the importance (and exposure) of recruitment agencies’ contracts.
Drivers Negligence Insurance
The majority of recruitment businesses that provide temporary drivers will be contractually required to have Drivers Negligence insurance in place.
Drivers Negligence insurance was created to contribute towards the cost of repairing a vehicle that has been damaged by the temporary worker they have provided. The cover is not intended to replace motor fleet insurance, as all third-party damage is excluded. The cover is there to pay a certain amount towards a hirers motor fleet excess, or in respect of small amounts of damage, to enable the hirer to repair their vehicle without having to make a claim on their motor fleet insurance.
RecruiterCover is a specialist combined policy that is designed for recruitment and employment agencies. RecruiterCover has a menu-driven policy which can cater the varying needs of recruitment businesses with flexible limits and includes options for all the sections mentioned in this article.
Working with aQmen Underwriting
Our approach is simple; we use our sector knowledge and underwriting expertise to offer specialist and competitive insurance solutions.
We have been serving our niche sectors for over 12 years and our focus is on providing brokers with cost-effective and suitable insurance for their clients, to help win and retain business. We provide open access to our experienced underwriters who understand the markets and the risks faced by clients.
Find out more
To find out more about our RecruiterCover, please contact Gary on email@example.com.