What clients expect from your insurance as a recruitment agency
Choosing the right insurance for your recruitment agency...
Choosing the right insurance for your recruitment agency is more than a box-ticking exercise. Whether you place permanent hires, temps, or contractors, your agency faces specific risks that general business insurance doesn’t cover. This guide explains what to look for in a policy and how Kingsbridge Recruitment Insurance helps protect your agency with confidence.
Why recruitment agencies need specialist cover
Recruitment is a people-driven industry. From misrepresented candidates to data protection, even small errors can lead to expensive claims. A tailored policy ensures your agency meets legal requirements, satisfies client contracts, and manages sector-specific risks.
General business insurance won’t provide the protection needed for:
- Placed worker negligence
- Professional errors in vetting or placement
- Vicarious liability for temporary staff
- Contract disputes and legal investigations
- Data breaches involving CVs and personal records
Core cover to expect in a recruitment insurance policy
A well-structured recruitment agency insurance package typically includes:
Professional Indemnity insurance
This covers claims where your agency is accused of negligence, such as placing an unqualified candidate or breaching confidentiality. It protects against legal defence costs, compensation claims, and reputational harm. Most clients now require agencies to hold PI insurance as a condition of doing business. Why professional indemnity insurance matters for recruitment agencies
Employers' Liability insurance
Legally required in the UK if you employ staff (even temps or part-time help). EL insurance covers workplace injury or illness claims. Without it, you could face fines of up to £2,500 per day.
Public Liability insurance
Protects your agency against third-party injury or property damage claims. For instance, if a client slips during a site visit, or an employee damages a client's property.
Vicarious Liability cover
If your agency places temporary or contract workers, this extension covers you if a placed worker causes harm or financial loss at a client site. It’s crucial for temp-focused agencies and included in Kingsbridge Recruitment Insurance’s cover.
Cyber Liability cover
Covers data breaches, hacks, and GDPR violations. Recruitment agencies handle sensitive data daily, and a breach could result in fines, lost business, and regulatory scrutiny.
Legal Expenses cover
Useful for dealing with contract disputes, HMRC investigations (including IR35), and employment tribunals.
Directors' and Officers' Liability
Protects directors personally against claims of mismanagement or breach of duty. Often overlooked, but critical for growing or incorporated agencies.
Additional features to look for
- Contract review services – While we are not legally qualified to ensure compliance with contracts, we can help you to review them to assess the adequacy of your insurance policy and ensure it responds to the contracts you are agreeing to.
- "Any one claim" indemnity structure – resetting your limit per claim rather than per year, offering better protection.
- Retroactive cover – protecting against claims from past placements.
What sets Kingsbridge Recruitment Insurance apart
Kingsbridge Recruitment Insurance offers tailored insurance packages built for the real risks faced by recruitment businesses. We provide:
- Comprehensive cover for temp and perm placements
- Vicarious liability and IR35-focused protection
- A-rated insurers and flexible policy options
- Expert support from industry specialists
FAQs recruiters ask when choosing insurance
Do I need insurance to start a recruitment agency?
Yes. Employers’ Liability is legally required if you have staff. Professional Indemnity is often a contractual necessity.
What level of cover do I need? Most agencies require:
- £5 million for Employers’ Liability (legal minimum)
- £1–£5 million for Professional Indemnity, depending on contract values and sectors served
What if I only place permanent staff?
You still face risks from negligent placement, data breaches, or contract disputes. Specialist insurance helps protect your operations.
Are umbrella companies covered?
Umbrella companies need their own policies. Kingsbridge Recruitment Insurance offers separate cover for umbrella firms that act as employers.
Can I get cover that grows with my business?
Yes. Kingsbridge Recruitment Insurance offers flexible packages you can adapt as your agency expands into new sectors or staff types.
What do clients expect from your insurance?
Clients often expect you to hold comprehensive cover including Professional Indemnity, Public Liability, and Employers' Liability. Demonstrating this can be essential to win contracts. What clients expect from your insurance as a recruitment agency
What is recruitment agency insurance?
It's a specialist form of insurance combining multiple covers to address the unique risks recruitment firms face, from placed worker liabilities to contract disputes. Explore what recruitment agency insurance covers
Making the right choice with recruitment agency insurance
Recruitment is fast-paced and high-risk. Your insurance should match that. Choosing the right provider gives you confidence that you’re covered for today’s risks and tomorrow’s growth. With Kingsbridge Recruitment Insurance, you get sector-specific protection that meets legal, operational, and client requirements—all in one place.
Ready to protect your recruitment business? Explore our dedicated insurance for recruitment agencies page to learn more or request a tailored quote from Kingsbridge Recruitment Insurance today.