Adding a safety net. How to choose the right insurance for recruitment agencies and temporary workers.

(Read time: 2 mins)

When it comes to insurance, there are certain kinds that businesses must legally have. For example, if you have employees then you must take out employers liability insurance which covers compensation claims made by staff have suffered injury, illness or damage as a result of their work.

As a recruitment agency, you might like to consider taking out additional insurances and specialised cover to protect your business against a wider range of risks.

Types of Insurance

Professional Indemnity

Good recruiters can easily speak to 50 different people per day. Professional Indemnity Insurance protects your business if wrongful advice is given, a statement is made which is libellous or slanderous, or if negligence occurs. TOP TIP Check that your professional indemnity insurance covers your recruitment agency for vicarious liability. This can protect you in situations where you are responsible for the negligence of another party, for example, the actions of a temporary worker.

Public Liability

Whether the accident or injury takes place on your business premises or in the wider community, if your business activities result in injury to a third party or accidental damage to their property, a public liability insurance policy can protect against claims for compensation.

Directors and Officers Insurance

More often than not, a recruitment agency director is also a recruiter. This type of insurance covers the cost of defending a claim against a director or officer of the company for allegations of wrongful acts.

Cyber and Data Risks Insurance

Recruitment agencies process vast amounts of data daily. Couple this with the fact that data is often confidential such as CVs, bank details, salary information, and recruitment agencies present an attractive target for cyber-attacks. You can recover the costs in the event of an attack and subsequent security breach by taking out this type of policy.

Legal Protection Insurance

This type of insurance is useful to all businesses as it safeguards the business against employment disputes and compensation awards, tax and VAT disputes, and jury service allowance. However, given the clampdown of HMRC on disguised employment and tax avoidance, recruitment agencies are more likely than other businesses to find themselves at the wrong end of a claim.

Where can you get cover?

A quick Google search will find all the policies you need, but we’d recommend getting policies tailored to the recruitment industry. This way you’ll be able to get industry-specific help and advice if something does go wrong. Your best option is to first seek advice from a broker.

By adding Plus to your Preferred Supplier List, insurance is one less thing for your agency workers to worry about!

Included within our competitive margin of £15.00 per week, our umbrella workers are covered by employers liability, public liability and professional indemnity insurance. This is alongside our other great value-adding services:

• Faster payments
• Employee self-service app and portal
• Employment rights
• Perkbox subscription
• No fee to join!

To find out more about Plus Payroll Services you can visit our website at www.pluspay.uk.com or you can call us on 03333 110 222 and speak to a helpful customer service advisor.

*This document is not a substitute for specific legal, accounting or other professional advice or opinions on related matters and issues that arise and should not be taken as providing specific advice on any of the topics discussed.

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