Insurance for recruitment and staffing agencies
Recruitment and staffing agencies fulfill a valuable role by finding talented, experienced professionals to place with their client firms.
However, sourcing high-quality candidates to fill demanding career positions with a variety of organizations comes with significant risks. For example, if your agency recommends an individual to a client who fails to live up to expectations because they lack the necessary skills and experience, your agency may be at risk of misrepresenting that individual to your client. Or if a candidate you placed at an organization is suddenly let go and files a wrongful dismissal lawsuit against your client, they could also name your recruitment and staffing agency in that suit.
A recruitment and staffing business insurance policy can help protect your agency from these and other types of risks.
What is recruitment and staffing insurance?
Recruitment and staffing business insurance is a policy that is tailored to suit your agency’s specific needs. A comprehensive policy of this kind features several coverages that are designed to protect your business’s assets. Moreover, recruitment and employment agencies are one of the many types of businesses that may be required to carry professional liability insurance to operate legally in the province they provide their services.
What does it cover?
A comprehensive recruitment and staffing agency insurance policy typically includes the following coverages:
- Professional Liability Insurance: Also known as errors and omissions (E&O) insurance, professional liability insurance provides your agency with protection against misconduct, misrepresentation, negligence, and failing to deliver a service as promised. Any employment agency could be accused of negligence or an accidental breach of confidentiality that results in an expensive lawsuit. Professional liability insurance covers your legal costs and damages.
- Commercial General Liability (CGL) Insurance: CGL insurance is frequently referred to as ‘slip-and-fall’ insurance because it is designed to cover your exposure in your agency’s day-to-day operations. Essentially, it protects you against claims related to third-party bodily injury and property damage that may occur due to negligence or an accident. CGL covers your legal expenses and the outcome of any related lawsuit.
- Commercial Property Insurance: Commercial property insurance protects your office from loss or damage caused by severe weather, fire, flood, vandalism, or theft. Also known as commercial building insurance, it covers the cost to replace or repair damages to your building, as well as the equipment, electronics, furnishings, and inventory housed at your premises.
- Cyber Liability Insurance: Protecting your agency, clients, and job seekers’ confidential data from the risks posed by cybercrime and accidental data breaches is paramount for any organization. Cyber liability insurance is designed to help you do that. It provides coverage for legal costs and damages if your agency is a victim of a cyber-attack or if one of your employees inadvertently exposes confidential data. It also covers the cost to repair and restore your computing systems and any losses you suffer resulting from a cyber-related event.
Who needs it?
All businesses that offer recruitment or staffing services should protect their assets and reputations with a comprehensive insurance policy. Zensurance has helped thousands of staffing firms and industry professionals get the coverage they need, including:
- Contingency employment agencies
- Executive search firms
- Human resources management professionals and firms
- Recruiters and recruitment agencies
- Staffing agencies
- Temporary help agencies
- Traditional employment agencies
How much does it cost?
Insurance for a recruitment or staffing agency may start at approximately $1,000 per year, but larger agencies should expect to pay more. In general, insurance companies determine the cost of a recruitment and staffing agency insurance policy on a variety of factors, including:
- The location of your agency and the services you provide
- How many employees you have
- Your organization’s certifications, training, and experience
- Your agency’s annual and projected revenue
- Your insurance claims history
With more than 50 insurance providers in our partner network, Zensurance can offer you a variety of options to meet your needs at the best price.
Common claims scenarios
Frequently asked questions