Recruiters play an important role in helping connect clients with talent that suits their needs. Despite the important role they play, identifying and recommending people for roles that need to be filled comes with risk. That is why recruiter insurance is so vital. ALIGNED can help recruiters of all shapes and sizes find the right policies for their agencies.
Does my recruitment agency need insurance?
Yes, if you run a recruitment agency, then you can benefit from recruiter insurance. This line of work has many risks, and the best way to protect against them is with an insurance policy tailored to the needs, preferences and budgets of recruitment firms and agencies. For example, a recruiter insurance policy might include commercial general liability insurance, professional liability insurance, commercial property insurance, and more, which can safeguard your agency against third party claims, property damage, etc.
Personalized insurance coverage for recruiters
Every recruitment agency is different and as such recruitment firm insurance policies are not all the same. Although there might be certain coverage types that are recommended for companies in the recruiting industry like yours, as the policyholder, it will ultimately be up to you to decide which coverages to include in your plan. A few coverage options that may be available to you are as follows:
- Commercial general liability insurance: Commercial general liability insurance, or slip and fall insurance, can protect your recruitment agency against claims of third party bodily injury, property damage, and more. If such a claim is brought against your agency, your insurer may help cover the related costs, which could include legal fees, repair bills, medical expenses, and more.
- Commercial property insurance: Commercial property insurance can protect the office that your recruitment agency works out of, along with its business-related contents. How can it protect them? From property damage that is caused by an insured peril named in your policy. Examples of insured perils that are commonly included in recruiter insurance policies are windstorms, fire, theft, water damage, and vandalism. However, there are several other perils that you may be able to add to your policy.
- Directors & officers liability insurance: If your recruitment agency has a board of directors, you may wish to add directors & officers liability coverage to your policy. This coverage option is designed to compensate policyholders for the cost of a lawsuit if any of your board members are sued.
- Professional liability insurance/errors & omissions insurance: Errors & omissions insurance is a type of liability coverage that can safeguard your recruitment agency against claims of negligence, professional errors, failure to deliver a service as promised, etc. For instance, if one of your recruiters conducts an executive search and matches someone to one of your client’s insurance roles but something goes wrong, the client could sue you. With professional liability coverage, your policy could help pay for legal fees and other related costs.
- Cyber liability insurance: If your recruitment agency stores sensitive information online, such as contact or financial information about your clients, cyber liability insurance should be added to your policy. Under this portion of your policy, you can be protected against data hacks or breaches and receive compensation for subsequent credit monitoring, legal fees, client notifications, and more.
- Umbrella liability insurance: Umbrella liability insurance takes effect when regular liability limits are reached, meaning it can protect your recruitment agency against significant unforeseen or catastrophic events.
- Employment practices liability insurance: If someone who currently or previously worked at your recruitment agency alleges that they were wrongfully terminated, harassed, or were the victim of employment-based wrongful acts, the employment practices liability portion of your insurance plan can cover the associated costs.
What impacts the cost of recruiter insurance?
A few factors that may influence the cost of insurance for recruiters are as follows:
- The location and size of your recruitment agency
- Types of roles, industries and/companies you are recruiting for
- Your insurance claims history
- The policy coverages, limits, and deductibles you want to include in your recruiter insurance policy
- The annual and projected revenue of your recruitment agency
- The number of people your recruitment agency employs
- Your years of experience in the field
For more information on which factors will be considered when purchasing recruiter insurance, contact ALIGNED. Our insurance brokers can provide further insight into how insurance companies set premiums and even offer some tips on how you can save money on recruiter insurance.
Get ALIGNED with quality recruiter insurance
If you’re ready to ALIGN your recruitment agency with recruiter insurance coverage that meets your needs, contact us today. ALIGNED is an insurance brokerage that specializes in commercial insurance, and we can find a flexible policy that protects your agency against the specific risks it faces. Whether you have questions about how recruiter insurance works or want advice on which coverage to include with your policy, you can rely on us. Call ALIGNED today to speak with a licenced insurance broker or click here for a free quote. You can purchase recruiter insurance online or over the phone with ALIGNED.