Recruitment Insurance
Fast-paced industry
The recruitment market has become more competitive than ever with recruiters facing increasing pressure to work at pace to meet client demands, whilst still finding the time to do the due diligence required to ensure compliance with ever-evolving HRMC requirements.
The threat of cyber-attacks
Recruitment firms are data-rich environments holding both sensitive personal and corporate information and payment details – and have become attractive targets for online criminal activity.
Employee engagement & retention
In the war for talent, candidate attraction and retention are high up on many firms’ agendas. Organisations today need to think holistically about their wellbeing strategy, providing a programme that centres around the four pillars of wellbeing: mental, financial, physical, and social, and which supports employees, both inside and outside of the workplace.
Why do you need specialist recruitment insurance?
From business interruption to vicarious liability cover, finding the right protection for your business can become complex when accessing the breadth of your candidate portfolio.
Ensuring you have the right programme in place requires insight, experience and knowledge to ensure the assets in your business – including your people – are protected and your liabilities are ring-fenced to help you mitigate your risks.
We start by gaining a thorough understanding of your business, then we work with you to develop a proactive and innovative programme that’s fit for purpose.
Our approach to recruitment is different to most in the market
We’ve seen how the insurance sector has delivered consistently poor service and lost its personal touch. We aim to challenge the status quo and bring people back to the centre of our thinking.
At Partners&, we focus on a proposition based on partnership, advice, and consultancy.
What does this mean?
This is particularly important when you are supplying temporary workers, we aim to provide the right level of advice and education in terms of the risks you face and how together we work to best mitigate those risks and protect you against the potential liabilities that may arise.
To use our tools to improve your risk profile before presenting to insurers. Doing so increases the likelihood of acceptance, drives more favourable terms, and reduces the risk of dispute in the event of a claim between you and the insurer, and any subsequent commercial difficulty.
Who are an active member of your broking team, helping with claim prevention in addition to standing shoulder to shoulder with you if the worse occurs – and our insurer partners know unequivocally that will always be our approach.
We explain the insurer’s documentation and how to access our risk management partners.
To explain the process for claims notification so that we can manage your insurance programme throughout the year. We also actively encourage communication throughout the year if you need advice or assistance and to make the most of our contract review service.
With a deep understanding of cyber risk mitigation and people risks expertise in your business including key person and wellbeing advice.
To allow time to adequately review your needs, understand any changes that may have taken place in the business and produce the most accurate presentation of risk to insurers. It also guarantees you the time to make informed choices.
Who we support
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Our recruitment Ecosystem
Professional Passport is independent provider of cost-effective compliance and risk management solutions, and offers unbiased, dependable advice and support to everyone involved in the human resources marketplace.
Championing Independent Work, IWORK provides many resources to help all types of independent workers, from agency workers, temps, gig workers, contractors, freelancers and the self-employed to better understand the business of working independently.
Professional Passport is independent provider of cost-effective compliance and risk management solutions, and offers unbiased, dependable advice and support to everyone involved in the human resources marketplace.
Championing Independent Work, IWORK provides many resources to help all types of independent workers, from agency workers, temps, gig workers, contractors, freelancers and the self-employed to better understand the business of working independently.
FAQs
The increasing prevalence of agencies entering non-standard terms with hirers makes this an important consideration. These non-standard terms can lead to you being held vicariously liable for any losses arising out of their actions when on placement, irrespective of the actual employment status of the person or persons being supplied. It is important that any non-standard terms are reviewed alongside your insurance policy to ensure that any increased risk is adequately covered.
We understand the increasingly competitive nature of your marketplace. Running a business involves taking risks, and we’ll work with you to mitigate the potential impact of those risks.
The terms you enter with your hirers may be your own standard terms, they may be the clients’ own standard terms, or they may be bespoke and specific to any given contract. Insurers typically differentiate your contracts into two categories for the purpose of assessing the risk:
Standard Terms of Business are terms of business which contain an agreement that any person or entity you supply shall be under the direction, supervision, and control of your end client with regard to the responsibility for legal liability incurred.
- to such persons or entity and
- to any other party because of the acts or omissions of such persons or entity
Non-Standard Terms of Business typically means that the terms will include a liability clause that will require your insurers to provide cover in respect of any injury, damage or errors and omissions made or caused by the persons or entity you are supplying.
You should be mindful that as the scope of services businesses in the recruitment chain has broadened, the types of contracts that underpin contractual relationships have evolved. You may, for example, enter into Managed Service Agreements that include a Statement of Work document. These agreements can create specific insurance requirements that need to be reviewed and assessed carefully. If in doubt speak to your insurance partner.
Agencies and umbrella companies that supply driver are increasingly being asked by their clients to purchase this cover. It is necessary when the terms make you liable under the contract for specific damage caused by the negligent acts of the driver you have supplied. Driver negligence insurance is intended to cover vehicle claim costs.
Driver negligence insurance is not a standalone policy, it is an extension to public liability insurance, which provides cover for damage to the hirers vehicles. The intent is essentially to negate the need for your clients to claim on their own motor insurance policies for what are usually minor claims.
It does not cover third party injury or damage to their vehicles or property due to road traffic accidents. This must be covered under a separate motor policy in accordance with the law.
You only need to purchase driver negligence insurance where you have entered into an agreement where you have accepted that responsibility. Not every driver you supply will necessarily need to be covered as cover is only applicable where it is a requirement of the contract.
Driver negligence insurance is not provided by all insurance companies. Where it is available, the cover may have specific conditions in respect of the age, experience and any prior convictions incurred by the driver. An excess will be applicable to claims made under the cover. The policy will ordinarily have two limits:
Any one claim – usually either £5000 or £10,000
Any one period – usually either £30,000 or £50,000
Resources
IR35: What does it mean to ‘take reasonable care’ and protect your business?
What happens if I need to make a claim?
Claims never come at the right time, but our dedicated claims advisers are here to support you through the entire process. Contact us right away to start your claims process.
More information on our claims support here – https://www.partnersand.com/claims-support/
Contact the recruitment team
Marc Ratcliffe
Client Partner
Danny Nield
Marc Ratcliffe
Client Partner