Securing the right insurance cover is essential for recruitment businesses. Whether you’re renewing your existing policy or exploring new options, understanding how the UK commercial insurance market works and preparing effectively can help you secure the best cover for your business at a competitive price.
This guide will help you confidently navigate your next renewal and ensure your business is fully protected.
Why recruitment businesses need specialist insurance
Recruitment businesses face unique risks that general business insurance may not cover. These include, for example:
- Breach of contract if a client claims a placed candidate wasn’t suitable.
- Data breaches or cyber-attacks, especially with sensitive client and candidate information.
- Negligence claims if a candidate’s actions lead to financial loss for a client.
REC members benefit from access to exclusive, tailored insurance packages designed to meet the specific needs of employment agencies, recruitment consultants, and staffing firms.
Start your renewal early
Planning ahead gives you time to explore options and negotiate with insurers. Work with your broker at least two to three months before renewal to assess the market and ensure you get the best deal.
A well-prepared risk management presentation can strengthen your position and improve your chances of securing favourable terms.
Review your cover and policy structure
Recruitment businesses often require multiple types of insurance, including:
- Professional indemnity—cover for client claims of negligence or financial loss. This protects you from errors, acts or omissions in the normal performance of your work and can also be extended to protect you in the context of your temporary placements.
- Employers and public liability—cover for claims from employees, candidates or the public for damage or injury.
- Cyber insurance—protects against hacker damage and cyber threats.
- Business interruption coverage—covers increased costs to continue business operations or loss of income when your premises suffers an unforeseen event like fire or flood.
Assess changes in your business operations, workforce, or client risks since your last renewal. Consolidating policies with a single insurer may also help reduce costs and streamline coverage.
Demonstrate strong risk management
Insurers reward businesses that proactively manage risk. The following practices can positively impact the cost of your premium:
- Robust compliance measures.
- Cybersecurity protections.
- Candidate screening processes.
- Health and safety protocols.
If you’ve made previous claims, highlight the steps taken to prevent similar issues in the future.
Consider adjusting excess levels
Opting for a higher policy excess or deductible can reduce premiums but ensure your business can financially absorb higher out-of-pocket costs in the event of a claim.
Your broker can help find the right balance between cost savings and financial security.
Work with a specialist recruitment insurance broker
A broker who understands the recruitment industry ensures you get specialist support and coverage tailored to your needs.
When evaluating brokers, ask about:
- Ongoing service and claims support.
- Access to exclusive REC member policies.
- Industry-specific insurance expertise.
Avoid using multiple brokers for the same renewal, creating confusion and coverage gaps.
Why choose us for your recruitment business insurance?
At REC Insurance Services, powered by Marsh Commercial, we specialise in arranging insurance for recruitment businesses. As an REC member, you benefit from our industry expertise and access to tailor-made, comprehensive cover designed to protect your business from everyday risks, as well as 10%* discount on your recruitment insurance.
Our team is here to help you navigate the renewal process, negotiate better terms, and customise policies to fit your needs. We continually review our products and services to ensure businesses like yours receive high-quality advice and support.
We also offer a FREE business insurance check to see if we can improve your current cover or service.
Need help with your renewal? Contact us today.
Call us on 0330 818 7634 or click here.
*Included as standard, providing the insurer's criteria have been met, and when you purchase either public liability or professional indemnity cover.