Recruitment Agency Insurance

Like your business, we’re all about finding the perfect match. We’ll help you find suitable insurance cover to protect your recruitment agency.

Get a quoteRequest a call back

What insurance does a recruitment agency need?

The specific insurance coverage that a recruitment agency requires will depend on the size and nature of the business, the services provided, and the jurisdiction in which the agency operates. As experts in recruitment insurance, we want to get to know your needs and challenges properly so that we can provide tailored insurance and risk management advice that suits you and your agency.

We can access a variety of recruitment agency insurance packages from market leading insurers, meaning we can offer a truly flexible approach, with our advice tailored to your agency and requirements.

  • Professional Indemnity Insurance: This type of coverage protects the recruitment agency against claims made by clients or candidates for alleged mistakes or omissions in the services provided.
  • Public Liability Insurance: This coverage provides protection against claims made by third parties who have suffered physical injury or property damage as a result of the recruitment agency's operations.
  • Employers' Liability Insurance: This coverage is mandatory for most employers in the UK and provides protection against claims made by employees who have been injured or become ill as a result of their work.
  • Material Damage Cover: This coverage provides protection for the recruitment agency's commercial property, including buildings, equipment, and inventory
  • Business Interruption Insurance: This coverage provides financial protection if the recruitment agency's business operations are disrupted due to a covered event, such as a fire or flood.
  • Cyber Liability Insurance: This coverage protects against losses incurred from cyberattacks, data breaches, and other cyber-related incidents.
  • Directors and Officers Liability Insurance: This coverage provides protection for the directors and officers of the recruitment agency against claims made against them for wrongful acts or decisions made in the course of their duties.
  • Employment Practices Liability Insurance: This coverage provides protection against claims of discrimination made by candidates or clients against the recruitment agency.
  • Legal Expenses Cover: This coverage provides recruitment agencies with financial protection against legal costs in case of disputes or claims. Cover typically includes defence costs, settlement costs, tribunal representation, contract disputes, and tax protection. It helps protect agencies from financial burden and provides peace of mind, but is not a guarantee of a successful outcome. Policy terms and conditions vary, so it's important to carefully read the policy wording.
  • Personal Accident Insurance: This coverage provides protection for recruitment agency employees who are injured on the job.
  • Vicarious Liability Insurance: If a recruitment agency places temporary staff with clients, there may be a potential for vicarious liability if the temporary staff causes harm or injury to others while working. In such cases, Vicarious Liability Insurance may provide coverage for the recruitment agency.
  • Medical Malpractice Insurance: If a recruitment agency specialises in placing medical professionals, such as doctors or nurses, it may be advisable to have Medical Malpractice Insurance in place. This type of coverage provides protection against claims made by patients who have been harmed as a result of medical treatment provided by a medical professional placed by the recruitment agency.
  • Driver’s Negligence Insurance: Depending on the specific services provided by the recruitment agency and the nature of their business operations. If the recruitment agency places temporary staff with clients who will be driving company vehicles as part of their job, it may be advisable to have Driver's Negligence Insurance in place. Driver's Negligence Insurance provides coverage for third-party claims made against the recruitment agency if one of their placed temporary staff causes an accident while driving a company vehicle. This coverage can help protect the recruitment agency from financial losses and legal liabilities that may arise from such incidents.
  • Key Person Insurance: This type of coverage provides financial protection for the recruitment agency in the event of the death or disability of a key employee.

Do recruitment agencies need professional indemnity insurance?

Recruitment agencies often require professional indemnity insurance, also known as errors and omissions insurance. This type of insurance provides protection against claims made by clients or candidates for losses suffered as a result of the recruitment agency's professional negligence or errors.

For example, consider a scenario where a recruitment agency places a candidate in a role, but fails to properly vet their background and experience. The candidate then causes significant harm to the client's business, such as financial losses or damage to the client's reputation. In this situation, the client may take legal action against the recruitment agency and make a claim for compensation. Professional indemnity insurance would cover the cost of defending the claim and any damages awarded.

In general, professional indemnity insurance is considered a crucial aspect of risk management for recruitment agencies, as it helps protect their financial stability and reputation in the event of a claim.

What insurance do I need to start a recruitment agency?

If you are starting a recruitment agency in the UK, there are several types of insurance cover that are considered critical for protecting your business:

Critical cover could include:

  • Professional Indemnity Insurance: This insurance protects your business against claims made by clients or candidates for losses suffered as a result of your professional negligence or errors.
  • Public Liability Insurance: This insurance protects your business against claims made by third parties for injury or damage to their property caused by your business activities.
  • Employers' Liability Insurance: This insurance is required by law in the UK if you have employees. It covers the cost of compensation and legal fees in the event that an employee suffers injury or illness as a result of their work for your business.
  • Directors and Officers Liability Insurance: This insurance provides financial protection against legal claims made against the agency's directors and officers for wrongful acts committed in their professional capacity. This can include claims for breach of duty, negligence, or wrongful decisions. D&O insurance covers the cost of defending against these claims, as well as any compensation that may be payable if the claim is successful. This insurance helps to protect the personal assets of the directors and officers of the recruitment agency and provides peace of mind.
  • Cyber Liability Insurance: This insurance covers the cost of any data breaches or cyberattacks that result in the loss of sensitive data, such as candidate or client information.

It's important to note that the specific insurance covers required for your recruitment agency will vary depending on the size and nature of your business, as well as the industries and clients you intend to work with.

As specialists in insurance for recruitment agencies, we strive to thoroughly understand your unique needs and challenges so that we can offer customised insurance and risk management guidance that is specifically tailored to your agency.

Types of recruiters and agencies we work with

  • Permanent Recruitment Agencies: Agencies who specialise in filling permanent job positions for a variety of industries and job roles.
  • Temporary and Contract Recruitment Agencies: Agencies who focus on providing temporary and contract staff to businesses, often in response to short-term needs or project-based work.
  • Executive Search and Headhunting Firms: Agencies who specialise in finding and recruiting senior-level executives and managers for businesses.
  • Niche Recruitment Agencies: These agencies focus on particular industries, job roles, or candidate types, some examples include, construction, education, engineering, finance, healthcare, IT, professional services and sales and marketing.
  • In-house Recruitment Teams: These are recruitment teams that are based within a larger organization and manage the recruitment process for the organization's vacancies.
  • Staffing Firms: These agencies provide temporary and contract staffing services, often for manual or lower-skilled job roles.
  • Driver hire, transport and logistics: These agencies specialise in providing staff for the transportation and logistics industry. They work with companies to find qualified candidates for roles like truck and delivery drivers, logistics coordinators, etc. 
  • Agencies placing into Hazardous locations: Agencies who specialise in placing personnel into hazardous locations typically focus on providing personnel for industries such as oil and gas, construction, engineering, and other sectors that require workers to operate in hazardous or challenging environments. These agencies would typically provide individuals with a range of skills, including health and safety, environmental management, emergency response, and other related areas.

Why choose PIB Insurance

Our Gloucester office are specialists in providing recruitment agency insurance, we want to get to know your needs and challenges properly so that we can provide tailored insurance and risk management advice that suits you and your agency.

We can access a variety of recruitment agency insurance packages from market leading insurers, meaning we can offer a truly flexible approach, with our advice tailored to your agency and requirements.

BIOR Logo PIB have recently partnered with The British Institute of Recruiters (BIOR) to promote insurance solutions to recruitment agencies, as well as supporting the BIOR’s Recruitment Certification Scheme for Recruitment Agencies & Individuals. Find out more about our partnership with the BIOR.

Request a quote for your Recruitment Agency

Get a quote

Latest news, industry insights and events

  • BT to withdraw Redcare Alarm signalling service from 1st August 2025

  • Renovating your home this year?

  • Building Safety Act 2022 and Residential Conveyancing: What law firms should be aware of

  • Healthcare Insurance - Key developments in 2023 and what's to come in 2024

Browse our complete service offering

Business Insurance

From caravan parks to schools, we use our niche expertise to help businesses big and small

Private Client Insurance

From home and motor, to boat and art; browse through our different types of insurance cover

Employee Benefits

The right benefits can make all the difference to your team, keeping them engaged and happy to work for you

Risk Management

All businesses face risks. What's important is how you deal with them. But you're not alone