Does the job nicely
Pick a recruitment consultants' insurance package (if your turnover's under £250,000) or build your own.
Cover that works for you
Good people are hard to find. That's why your clients come to you to do it for them.
That's the theory anyway. Problem is, if things don't work out, it's your reputation on the line. And negligence allegations are expensive and time-consuming to fight.
So it's nice to know that professional indemnity insurance takes care of all that for you.
It’d be great if we could say that and mean it. But we can’t.
Mistakes happen, accusations are made, solicitors get involved and clients want payback. Rightly or wrongly these things happen every day and, sooner or later, you could be on the receiving end.
A claim won’t go away if you ignore it. And there are no shortcuts. You have to Do Something About It.
So, you need professional indemnity insurance because you have a business to run; because you have limited funds; because you’re not legally trained; and because your reputation matters.
What else is there?
Usually, unless specifically stated otherwise, your insurance covers your business and your business only. This is called 'non-vicarious cover'.
So, you're insured for claims and allegations of negligence against you - mistakes or things you failed to do. In your case, that's finding and placing staff for your clients.
But, if one of the guys you place turns out to be a liability and your client sues you for his mistakes too, you're not covered. You'll have to deal with it on your own, and from your own pocket.
That's unless you have something called 'vicarious cover'. This type of policy covers your negligence as a recruitment professional, and the work of the people you place too.
Whether you need it or not depends on what's in your contracts. Whether you can get it or not depends on what your placements do. Generally speaking, insurers are happier vicariously covering office based, low-risk stuff like admin and IT rather than high risk things like nuclear engineers and oil rig workers.
Never assume you have vicarious cover. If you're not sure, check your policy wording or ask your broker.
Professional indemnity insurance protects your business. No one else’s.
So you have to decide what level of cover is enough for you. Consider what you do, who you do it for and how much it’s worth. Think about worst-case scenario and what could go wrong. What’s the most expensive mistake you could make (or be accused of making)?
Always bear in mind that you can’t have too much cover. Your legal defence can cost many tens of thousands of pounds – and that’s before the compensation bill from your client arrives. Your level of cover has to be enough to cover all of this.
It’s a tricky one to get right. Have a read of this guide or call us if you need more help.
Negligence claims and allegations made against you by clients and third parties, because of mistakes you’ve made and things you’ve failed to do.
Specifically (but depending on the policy wording):
- Intellectual property infringement
- Loss of documents or data
- Negligent misrepresentation or misstatement
- Employee dishonesty
- Virus transmission
- Breach of confidentiality
- Failure of third-party equipment
But that’s not all. Some professional indemnity policies can fix a mistake before your client is even aware of it, thereby preventing a claim in the first place.
Public liability insurance is for when you go out and about on business, or have visitors to your office. It’s for claims of physical damage to property and people. Useful if you’re clumsy.
Employers’ liability insurance covers your business if an employee sues it for damages. Claims are usually because they’ve suffered injuries and illnesses as a consequence of working for you. It’s a legal requirement for UK businesses with employees.
Office and property insurance covers the things in your office (furniture, plants, fixed IT equipment etc) and portable insurance covers gadgets and technical equipment away from the office (laptops, tablets, projectors etc). If you’re not sure it’s worth insuring, add it all up – it’s probably worth more than you think.
Business interruption insurance means you can still work when your office is out of action. Be it flood, fire or flea infestation, you’re covered for the costs of setting up elsewhere and for any lost revenue in that time.
Directors’ and officers’ insurance covers your company bosses. Anyone from regulators to shareholders to competitors can accuse you of not running a business with due care. Worse, directors are personally liable for their actions. The good thing is this insurance covers your defence costs and any compensation you have to pay. So you can put away your chequebook.
Glad you asked.
The simple answer is: we know what we're doing. Professional insurance is all we do so we know what you need, even if you don't.
We also know that buying insurance can be, well, a bit of a pain. So we make sure getting yours is quick and hassle-free.
We do all that while treating you like a human being, too. You won't find a call centre here. Or a phone menu. And we've banned nonsense insurance jargon.
Anything else? Well, there's the free stuff you get, such as MOO Minicards and Enterprise Nation business ebooks. We have an 'I'm insured!' badge for your website too – perfect for the professional professional.
Plus, every insurance-related question you can think of is answered in our School of Risk, and you'll get our quarterly risk advice email – 'The Waggle' – to help you avoid problems in the first place.
If you're after a second opinion, have a look at our customers' feedback. They're the ones you should really listen to.