Recruitment industry risks: what should you look out for?
Insuring recruitment agencies can be a tricky business. aQmen Underwriting, providers of RecruiterCover – Aviva’s marketplace solution for recruitment agency insurance – guides us through the risks to be aware of and the cover that may be required, when working with recruitment business clients.
aQmen Underwriting have been serving the niche recruitment insurance sector for over 12 years and focus on providing brokers with cost-effective and suitable insurance for their clients, to help them win and retain business. They provide open access to experienced underwriters who understand the markets and the risks faced by 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 suit them, 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 the hirer’s 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 hirer’s 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. aQmen Underwriting provides a contract review service to our brokers to ascertain where liabilities lie to help ensure that cover is appropriate.
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 hirer’s 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.
aQmen Underwriting’s approach is simple; they use their sector knowledge and underwriting expertise to offer specialist and competitive insurance solutions. As a Marketplace product, most Aviva business transacted with aQmen Underwriting will count towards your Aviva growth targets.
Find out more
To find out more about our RecruiterCover, head to Marketplace.
Marketplace is the home of the niche. The online platform is designed to give you a reliable and trusted route to market for your hard-to-place risks. All products on Marketplace are underwritten by Aviva and managed by brokers who are experts in their fields. You can be rest assured that clients will remain your own, and the cover provided will be first-class.
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