What clients expect from your insurance as a recruitment agency

Recruitment is a business of trust. Clients rely on you not only to deliver qualified talent but to demonstrate professionalism, responsibility, and preparedness. One way they evaluate this is through your insurance.

For many clients, your insurance cover is more than just a formality - it’s a safeguard that reassures them you can handle the risks associated with your services. It also proves you’re contract-ready, compliant with legal requirements, and commercially credible. In short, your insurance can be a key differentiator in a competitive market.

This guide explores what clients want from your insurance and how Kingsbridge Recruitment Insurance helps you meet - and exceed - those expectations.

Why clients ask for insurance documentation

Clients ask for proof of insurance because they’re protecting their own liability. Placing a candidate doesn't eliminate risk for them - it shifts it. And if a claim arises, they want to be certain your agency has the right protection in place.

Documentation gives clients visibility into your cover and peace of mind that if something goes wrong, you can respond. Most clients will expect:

• A certificate of Professional Indemnity insurance (e.g. for poor advice or misplacement)
• Proof of Employers’ Liability insurance, especially if you engage temps or PAYE workers
• Confirmation of Public Liability insurance, covering injury or property damage on-site

Without this information, many clients may delay onboarding or decline to proceed altogether.

Common insurance clauses in recruitment contracts

Recruitment agency contracts increasingly feature detailed insurance requirements. These are designed to transfer appropriate risk to your agency and ensure compliance with legislation and sector standards.

Typical contract clauses include:

• Professional Indemnity: £1–£5 million, covering errors in advice or placement
• Employers’ Liability: £5 million minimum by law, sometimes higher
• Vicarious Liability: essential if you place temps or contractors
• Cyber Liability: especially important in tech, finance, and healthcare roles
• “Any one claim” wording: preferred by clients over “aggregate” cover
• Policy verification: insurer name, policy number, and schedule

These clauses aren't just there for legal reasons - they reflect a broader shift in risk management culture, where supply chain transparency is expected.

Minimum levels of cover expected in 2025

Recent research shows rising expectations in cover levels as businesses become more risk-aware post-pandemic and amid IR35 enforcement. As of 2025, many clients now expect:

• Professional Indemnity: £2–5 million (higher in sectors like finance or engineering)
• Employers’ Liability: £10 million, especially where umbrella workers are involved
• Public Liability: £5–10 million, based on the work environment
• Cyber Liability: at least £250,000 for agencies handling personal or client data

Some public sector and enterprise clients also require additional assurances, like Run-Off Cover or legal expenses insurance for extended liability beyond contract termination.

Sector-specific expectations

Clients want your cover to reflect their industry’s risks. Kingsbridge Recruitment Insurance can tailor packages to these needs:

• Healthcare: Vicarious liability and, where needed, Medical Malpractice cover
• IT and finance: Higher Professional Indemnity and Cyber Liability thresholds
• Driving and logistics: Expectation of Drivers’ Negligence cover
• Construction and engineering: Higher Public Liability and contract works extensions
• Education and care: Safeguarding compliance and reputational risk cover

Customisation isn’t just helpful - it’s often required to pass procurement checks or join PSLs.

What happens if you're uninsured or underinsured?

Going without the right cover isn’t just risky - it can be commercially damaging.

Common consequences:

• Contract loss: You may be disqualified from opportunities
• Breach of contract: Legal and financial penalties if you fail to comply
• Unpaid claims: Your agency could be personally liable for costs
• Reputational harm: Word spreads fast, especially in niche industries

Claims also risk being denied if your cover is inappropriate or expired. Underinsurance can be as risky as no insurance at all.

How to demonstrate compliance confidently

Clients don’t want to chase you for paperwork. Instead, they want fast, transparent proof of cover.

To make compliance easy:

• Keep digital copies of certificates and schedules
• Ensure coverage includes placed staff, not just internal employees
• Provide documentation upfront during tendering or onboarding
• Consider using Kingsbridge’s client-friendly confirmation letters

Being proactive signals professionalism. And from a practical standpoint, it speeds up placements.

Bundling policies for peace of mind

Managing multiple standalone policies is time-consuming and risky. Bundled insurance offers convenience, clarity, and comprehensive protection in one place.

A typical Kingsbridge Recruitment Insurance bundle includes:

• Professional Indemnity insurance
• Employers’ Liability
• Public Liability
• Vicarious Liability
• Cyber Liability (now standard in most placements)
• Directors’ and Officers’ Liability
• Drivers’ Negligence or Contract Works Cover as required

These packages are designed specifically for recruitment agencies - whether you place temps, contractors, or specialist roles in regulated sectors.

Bundling ensures consistency across documents, keeps your renewal aligned, and helps avoid gaps in cover.

Why recruitment agency insurance needs to be specialist

General business insurance rarely fits the complexities of recruitment. You need:

• Vicarious Liability: not standard in typical PI or PL policies
• Tailored wording for staffing liability
• Sector-specific endorsements: like Medical Malpractice or Drivers’ Negligence
• IR35 alignment: some covers help show evidence of financial risk - important for off-payroll working rules

Specialist cover ensures you stay compliant with contract, legal, and operational standards across the board.

Prove your professionalism where it matters most

Clients expect a lot from their recruitment partners - and rightly so. When it comes to insurance, they want more than just proof. They want confidence.

The right cover from Kingsbridge Recruitment Insurance helps you:

• Comply with contracts and legislation
• Reassure clients and speed up onboarding
• Protect your business from complex, real-world risks

Let your insurance become a strength - not a stumbling block.

Talk to Kingsbridge Recruitment Insurance today about a bundled policy tailored to your agency’s size, sectors, and ambitions.