Employment was at an all time high at the beginning of the year, according to official sources. But then the Coronavirus hit and the job market found itself in a state of flux. Many employers stopped hiring and work for recruitment consultants correspondingly slowed down. It’s predicted that many employees currently on furlough will be made redundant once the Government scheme finishes at the end of October. So this means there will be more people seeking the services of recruitment businesses to find them a new job. Whether there will be lots of employers hiring by then is uncertain.
What is perhaps more certain is that recruitment consultants experiencing a lull at the moment may be a lot busier by the end of the year. Which is why now is a good opportunity to review your insurance requirements while you have the time.
What type of business insurance should recruitment consultants consider?
The answer to this question depends on what your business looks like and the type of risks you face. Not all businesses are the same and certainly not all recruitment businesses are the same. This is why it’s worth avoiding packaged “off the shelf” office insurance. This includes a whole array of covers, which you pay for whether you need them or not.
A better approach is to build your insurance “from the ground up”, taking all aspects of your recruitment business into consideration. That way you’ll have insurance tailored to your specific requirements and won’t incur any unnecessary cost.
Here is a list of the different types of insurance that might be worth considering for your recruitment business:
Professional Indemnity Insurance
As a recruitment consultant you provide a service connecting businesses with the right candidates to fill their job vacancies. If either a company or an individual believes the advice you gave was wrong and that you were negligent in some way, they could sue you. Professional Indemnity Insurance will cover your legal costs and any compensation if you are found to be at fault.
Public Liability Insurance
Before Coronavirus hit, it’s likely that you met employers at their offices and potential candidates at yours. While most meetings and interviews are via video conferencing at the moment, normal times will return and so will face to face meetings. When they do, it’s important to have Public Liability Insurance in place. This covers visitors who are injured on your premises and also protects you if you accidentally damage your client’s property while visiting them.
Employer’s Liability Insurance
If anyone works for you, you must have Employer’s Liability Insurance. It’s the law for all businesses which have at least one employee or two directors. This protects your employees if something happens to them while they’re at work.
If you own the building where you work it’s important to protect it with Buildings Insurance. This will pay for any damage or rebuild costs if you suffer an event such as a fire, flood or burst pipe.
As a minimum, it’s likely that you use a laptop and mobile for work at your recruitment business. You probably also have office furniture and other business equipment, such as a printer and photocopier. It’s surprising how the value of office contents soon mounts up. If you were to suffer a fire, the cost of replacing all your damaged goods would be high. This is why it’s worth protecting the contents of your office with insurance.
Cyber Breach Response
In recent years businesses have become more reliant on digital technology. Recruitment businesses are no exception. It’s likely that you have a website, hold candidate and employer information on a database and use online systems for all aspects of your work. Cyber Breach Response Insurance will help to get your recruitment business back up and running if you fall victim to a hacker or your systems are attacked by malware.
Director’s and Officer’s Insurance
If you have set up your recruitment business as a limited company and have a board of directors, D&O Insurance will provide them with extra protection if they make a mistake while carrying out their duties as a director.
Business Interruption Insurance
If you were forced to close your recruitment business for a period of time, Business Interruption Insurance would cover any loss of income. So if you suffered a fire for example, while your Buildings and Contents Insurance would cover the cost of rebuilding your offices and replacing your business equipment, Business Interruption Insurance would cover lost fees caused by downtime. However, it’s important to note that Business Interruption Insurance doesn’t cover downtime caused by a pandemic, such as the current Coronavirus situation.
Legal disputes can be very costly. If you find yourself embroiled in a dispute, Legal Expenses Insurance will cover the costs, as long as you didn’t act illegally.
If you or one of your employees is involved in an accident or becomes injured either at work or outside work, Personal Accident Insurance will pay a lump sum.
Tailored Insurance for Recruitment Consultants from Tapoly
Buy the insurance you need for your recruitment business quickly and easily from Tapoly. You can get a quote in less than a minute to find out how much it would cost to protect your business.
If you need help and support in getting your insurance please contact us at email@example.com