Employment agency or employment business?
What the Conduct Regulations mean for your obligations.
Recruitment AgencyInsurance
Recruitment Agency Insurance
Professional indemnity and employment practices cover built for recruitment agencies, covering the vetting and placement risks unique to this trade.
Professional indemnity and employment practices cover built for recruitment agencies, covering the vetting and placement risks unique to this trade.
Placement errorsCandidate dataTemps you supply
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What is recruitment agency insurance?
Recruitment agency insurance is a combination of covers built around placing candidates and supplying workers, professional indemnity for negligent vetting or placement, employers’ liability if you have staff, and cover for the personal data you hold on candidates.
The Conduct of Employment Agencies and Employment Businesses Regulations 2003 place a duty on agencies to check a candidate is suitable for a role, getting this wrong can lead to a professional indemnity claim.
Recruitment agency insurance can include:
Professional indemnityEmployers’ liabilityPublic liabilityBusiness contentsEmployment practices liabilityBusiness van insurance (separate policy)
Cover often bought alongside recruitment agency insurance
Professional Indemnity
Covers claims that a negligent placement or reference caused a client a financial loss.
Employers’ Liability
A legal requirement once you employ any staff, even casual help.
Cyber Insurance
Covers costs following a data breach involving candidate or client data.
Business Contents
Protects your office, IT equipment and records.
Employment Practices Liability
Covers claims relating to how you handle candidates and clients.
Placing candidates or supplying temps?
Placing candidates or supplying temps?
The Conduct Regulations treat the two differently, and it affects your obligations.
The Conduct Regulations treat the two differently, and it affects your obligations.
| Type of work | What the law calls you | Your obligations |
|---|---|---|
Introducing permanent candidates to employers | An ‘employment agency’ | Fewer ongoing obligations once introduced |
Supplying temporary workers to a hiring business | An ‘employment business’ | More obligations, including paying workers correctly |
Providing right to work checks | Required before supplying any worker | A criminal offence if skipped |
Handling candidate CVs and personal data | Governed by data protection law | Cyber cover is worth considering here |
Top Tip
The Conduct of Employment Agencies and Employment Businesses Regulations 2003 place a duty on you to check a candidate is suitable for a role, a breach is a criminal offence, and getting it wrong is also exactly the kind of claim professional indemnity is designed to cover.
How much does recruitment agency insurance cost?
There’s no fixed price. It depends on whether you place permanent staff or supply temps, your turnover, staff numbers and claims history.
Permanent vs temporary placements
Supplying temporary workers can carry different risk to permanent introductions.
Annual turnover
Higher turnover generally means a higher premium.
Number of staff
More employees increase your employers’ liability exposure.
Level of cover
Higher professional indemnity limits increase your premium.
Sectors you recruit for
Placing candidates in regulated or vulnerable-sector roles can affect your risk.
Claims history
A clean claims record helps keep premiums down at renewal.
How to get recruitment agency insurance
How to get recruitment agency insurance
Getting recruitment agency insurance takes four steps: tell us about your agency, choose your covers, compare specialist insurers, then get covered, often the same day.
Getting recruitment agency insurance takes four steps: tell us about your agency, choose your covers, compare specialist insurers, then get covered, often the same day.
1
Tell us about your agency
Whether you place permanent staff, supply temps, or both.
2
Choose your covers
Professional indemnity, employers’ liability and any extras.
3
We compare specialist insurers
We search our panel of 20+ UK insurers.
4
Get covered and trading
Receive your documents, usually the same day.
UK-based specialist advisersAccess to specialist insurersNo obligation, just expert helpTrusted by thousands of businesses across the UK
Trusted by thousands of businesses across the UK
From everyday business insurance to complex specialist cover, our customers trust Insurance Revolution to find the right protection and provide expert support when it matters.
From everyday business insurance to complex specialist cover, our customers trust Insurance Revolution to find the right protection and provide expert support when it matters.
Recruitment agency insurance guides
Recruitment agency insurance guides
Practical advice on cover, the Conduct Regulations and staying protected.
Practical advice on cover, the Conduct Regulations and staying protected.
Recruitment agency insurance FAQs
Recruitment agency insurance FAQs
Straight answers on cover, the Conduct Regulations and cost.
Straight answers on cover, the Conduct Regulations and cost.
Recruitment agency insurance is a combination of covers built around placing candidates and supplying workers: professional indemnity for negligent vetting or placement, employers’ liability if you have staff, and cover for the personal data you hold on candidates.
Still have questions?
Our advisers are here to help you find the right solution.