Recruitment Agents

What can go wrong?

It can be difficult to know whether the person recruited for a position will work out until they’re in situ. The recruitment process is both notoriously difficult and important to get right – which is why many businesses look to recruitment agencies to find the staff they need. However if things don’t work out they’ll also look to them for compensation. The nature of claims in this sector depends on the extent of services the agent provides but will commonly include issues like negligent or inappropriate placements, failure to vet candidates and failure to perform background checks.

Cover considerations

Cover is not compulsory for recruitment agents but is widely available and a good selling tool. Generally written on a full civil liability basis, it provides protection from claims arising out of business activities beyond negligent actions, unless specifically excluded.This means things like defamation, infringement of intellectual property rights, breach of confidence, dishonesty and loss of documents will also be covered.

Cover for vicarious liability (the negligent acts of individuals placed) is available but isn’t generally offered as standard. Cover should always dovetail with the contractual arrangements made between the agent and their clients.

The placement of temporary staff into certain sectors may require cover for bodily injury and property damage.

What are insurers looking for?

The type of placements made, the business sectors worked in (areas like finance and healthcare are considered high risk because of the potential for placed staff to cause damage or loss), the extent of involvement in the final selection process, relevant experience and claims record. They’ll also look for consistent use of terms and conditions and sign off procedures that make clear who’s responsible for what.

To find out more about
call or email:

Pat Boreham
Broker Development
Tel: 020 3757 0138