{"id":4469,"date":"2022-08-11T15:40:00","date_gmt":"2022-08-11T14:40:00","guid":{"rendered":"http:\/\/www.policybee.co.uk\/blog\/?p=4469"},"modified":"2025-08-21T16:48:13","modified_gmt":"2025-08-21T15:48:13","slug":"recruitment-consultants-do-you-have-the-right-cover","status":"publish","type":"post","link":"https:\/\/www.policybee.co.uk\/blog\/recruitment-consultants-do-you-have-the-right-cover","title":{"rendered":"Recruitment consultant insurance: do you need vicarious cover?"},"content":{"rendered":"\n<p><\/p>\n\n\n<div class=\"wp-block-image is-resized\">\n<figure class=\"alignright size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"600\" height=\"300\" src=\"https:\/\/www.policybee.co.uk\/blog\/wp-content\/uploads\/2012\/06\/man-in-office-at-laptop-checking-cv-resume-recruitment-recruiter-concept_shutterstock_1320060491.jpg\" alt=\"Check whether you have the right recruitment consultant insurance by reading your policy wording.\" class=\"wp-image-19965\" style=\"object-fit:cover;width:300px;height:150px\" srcset=\"https:\/\/www.policybee.co.uk\/blog\/wp-content\/uploads\/2012\/06\/man-in-office-at-laptop-checking-cv-resume-recruitment-recruiter-concept_shutterstock_1320060491.jpg 600w, https:\/\/www.policybee.co.uk\/blog\/wp-content\/uploads\/2012\/06\/man-in-office-at-laptop-checking-cv-resume-recruitment-recruiter-concept_shutterstock_1320060491-300x150.jpg 300w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/figure>\n<\/div>\n\n\n<p>Generally speaking, most professional people buying <a href=\"https:\/\/www.policybee.co.uk\/professional-indemnity-insurance\" target=\"_blank\" rel=\"noopener noreferrer\">professional indemnity insurance<\/a> only really have to think about themselves.<\/p>\n\n\n\n<p>If you\u2019re buying <a href=\"https:\/\/www.policybee.co.uk\/recruitment-agency-insurance\" target=\"_blank\" rel=\"noreferrer noopener\">recruitment consultant insurance<\/a>, however, or cover for your employment agency,  it\u2019s slightly different. There\u2019s a unique, additional risk to your business: the people you place.<\/p>\n\n\n\n<p>But why are they a risk? You&#8217;re not responsible for their work, are you?<\/p>\n\n\n\n<p>Well, it&#8217;s possible you are, yes. Which means you might need something called &#8216;vicarious cover&#8217; added to your policy.<\/p>\n\n\n\n<p>The answer lies in the contracts you have with your clients. Either way, you&#8217;ll need to find out. And then decide if your insurance should cover your vicarious liability or not.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why having the right type of recruitment consultant insurance matters<\/h2>\n\n\n\n<p>Here&#8217;s&nbsp;a simple why-it-matters explanation.<\/p>\n\n\n\n<p>A recruitment consultant\u2019s job is to source and place staff for clients. But you know that.<\/p>\n\n\n\n<p>What you might not know is professional indemnity insurers have identified two fundamental risks with that:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Your <a href=\"https:\/\/www.policybee.co.uk\/blog\/what-does-negligence-mean\" target=\"_blank\" rel=\"noreferrer noopener\">negligence<\/a> when sourcing and placing staff<\/li>\n\n\n\n<li>The negligence of the staff you place.<\/li>\n<\/ol>\n\n\n\n<p>Here&#8217;s&nbsp;the important bit.<\/p>\n\n\n\n<p>Because these risks are clearly defined, insurers separate cover into two different policies. So, <a href=\"https:\/\/www.policybee.co.uk\/recruitment-agency-insurance\" target=\"_blank\" rel=\"noopener noreferrer\">recruitment consultant&#8217;s insurance<\/a> covers either:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>your negligence only or<strong>&nbsp;<\/strong><\/li>\n\n\n\n<li>your negligence<strong> <em>and<\/em> <\/strong>that of the staff you place.<\/li>\n<\/ol>\n\n\n\n<p>These are called, respectively, <strong>non-vicarious<\/strong> and <strong>vicarious<\/strong> policies.<\/p>\n\n\n\n<p>You might think you need one type of recruitment consultant insurance policy when you actually need the other. And that matters because it could mean you\u2019re not covered when you think you are.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Vicarious or non-vicarious cover?<\/h2>\n\n\n\n<p>If your job is to find and place staff for your clients, and that\u2019s it, then that\u2019s where your liability ends. Your insurance needs to cover your ability to match the right person to the job, so non-vicarious insurance is enough. You only need cover for yourself and your business.<\/p>\n\n\n\n<p>However, placing people on temporary contracts (like in a care home) is different. If an employee you\u2019ve placed causes harm to someone (or something), your client\u2019s insurance is unlikely to cover them. It\u2019ll be you who picks up the tab if there\u2019s a claim of negligence.<\/p>\n\n\n\n<p>That\u2019s when you need vicarious cover. It covers you, your business, and those temporary employees if you have to fight an allegation that they\u2019ve made a mistake, damaged something, or if there\u2019s compensation to pay.&nbsp;<\/p>\n\n\n\n<p>You\u2019ll need vicarious terms for both your <a href=\"https:\/\/www.policybee.co.uk\/professional-indemnity-insurance\" target=\"_blank\" rel=\"noreferrer noopener\">public liability insurance<\/a> and <a href=\"https:\/\/www.policybee.co.uk\/professional-indemnity-insurance\" target=\"_blank\" rel=\"noreferrer noopener\">professional indemnity insurance<\/a>, so it\u2019s worth checking your policy wording. <\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What kinds of recruitment consultants may need vicarious cover added to their insurance?<\/h2>\n\n\n\n<p>Whether you need vicarious cover added to your policy really just depends on the nature of your placements\u2019 work. We get asked for it by all kinds of recruitment consultants and employment agencies. Including ones who specialise in <a href=\"https:\/\/www.policybee.co.uk\/professional-indemnity-insurance\" target=\"_blank\" rel=\"noreferrer noopener\">domiciliary care<\/a> and providing agency nurses.<\/p>\n\n\n\n<p>Most recruitment consultant insurance policies won&#8217;t cover vicarious liability as standard. So, ideally, your insurer or broker should ask if you need it when you buy your policy.<\/p>\n\n\n\n<p>Understandably, insurers are more comfortable vicariously covering the work of relatively low-risk, office-based staff (admin, IT etc) than high-risk, high-value people (nuclear engineers, bankers etc). This is particularly so if lots of staff are placed at any one time.<\/p>\n\n\n\n<p>Likewise, they prefer permanent staff to temps. That&#8217;s because there\u2019s usually a more robust recruitment process for permanent staff, meaning they&#8217;re a lower risk.<\/p>\n\n\n\n<p>Our advice is: don\u2019t assume either way.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Don&#8217;t live vicariously&#8230; know your limits<\/h2>\n\n\n\n<p>Understanding where the vicarious liability lies for the people you place and the mistakes they make is the first step to deciding what <a href=\"https:\/\/www.policybee.co.uk\/recruitment-agency-insurance\" target=\"_blank\" rel=\"noreferrer noopener\">recruitment consultant insurance<\/a> you need. <\/p>\n\n\n\n<p>Just to recap, if you place temporary staff, you&#8217;ll probably need vicarious cover. That&#8217;s because your client&#8217;s insurance often won&#8217;t cover temporary staff. So if they break something (or someone), it&#8217;s on you to cover the damages. <\/p>\n\n\n\n<p>However, if you place permanent staff, you&#8217;ll be looking for a non-vicarious policy. Your client will take responsibility for the work of any staff you employ. <\/p>\n\n\n\n<p>And if you place both temporary and permanent staff, vicarious cover will be the way to go. <\/p>\n\n\n\n<p>All clear? Just call us on <strong>0345 222 5391<\/strong> if you need more help. <\/p>\n\n\n\n<p><em>Image used under license from Shutterstock.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Generally speaking, most professional people buying professional indemnity insurance only really have to think about themselves. If you\u2019re buying recruitment consultant insurance, however, or cover for your employment agency, it\u2019s slightly different. There\u2019s a unique, additional risk to your business: &hellip; <a href=\"https:\/\/www.policybee.co.uk\/blog\/recruitment-consultants-do-you-have-the-right-cover\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":12,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[129],"tags":[137,150,171,207,173],"class_list":["post-4469","post","type-post","status-publish","format-standard","hentry","category-professional-indemnity-insurance","tag-insurance-explained","tag-managing-risk","tag-negligence","tag-recruitment-consultants","tag-vicarious-liability"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\r\n<title>Recruitment consultant insurance: do you need vicarious cover?<\/title>\r\n<meta name=\"description\" content=\"Did you 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