Recruitment consultant’s insurance creates a safety net as you conduct placement services. It provides security against the risk of financial instability should a claim from a disgruntled client come your way.
As you look for a suitable candidate, some things may not go according to plan. Failure to perform certain responsibilities can be expensive to deal with.
That is why FD Beck and our insurers provide an insurance policy that covers recruitment consultants and consultancy firm owners.
Even with a specific risk in your industry, a customisable insurance package can assist you in case of claims.
Insurance Packages for Recruitment Consultants
FD Beck offers specialised insurance covers for the recruitment industry.
Professional indemnity insurance provides financial protection, by way of legal defence costs and compensation for damages, to those who provide advice or a specialised service. It does this by responding to claims by third parties of alleged or actual negligence, or breach of a professional duty.
For instance, you fail to perform adequate background checks during the recruitment process. In the event that the client files a claim of negligence and is asking for compensation, you can seek protection from your insurer.
Public liability insurance policies are designed to provide protection against third party claims caused by your business activities that result in personal injury or property damage.
Let’s say during a meeting with one of the candidates your accidently spill a coffee and destroy their laptop. The candidate writes a letter demanding that you compensate him for the cost of an equivalent replacement laptop, which you can cover through this type of insurance.
Supplementary Business Insurance Packages
Risks come in many ways when operating a recruitment businesses. That is why recruitment agency business owners are advised to have a comprehensive range of insurance policies such as the following:
Business insurance protects the organisation in case of business interruption, property damage, and other factors that can lead businesses to financial loss.
Management liability insurance covers the directors and officers and or the business for claims typically brought from either the ACCC, ATO, ASIC or Employees in relation to the following alleged activities:
- False, misleading, improper & deceptive conduct by directors/officers and employees.
- Unfair/wrongful dismissal, discrimination, harassment, wrongful failure to employ or promote.
- Breach of intellectual property rights.
- Employee theft.
- Some statutory fines & penalties.
- OH&S prosecutions and inquiries.
Consultancy Corporate Travel insurance for recruitment consultants protects you during corporate trips even when the business trip includes some leisure travel. This kind of insurance provides cover for medical costs whilst away, and cancelled or interrupted travel.
Potential Risks that Consultants Face
Exposure to potential claims is based on the type of services provided to your clients, however the following are examples of some key exposures:
Secure a protective policy from a professional insurance broker
At FD Beck, with just a few clicks, you can get competitive quotes from reputable insurance companies in Australia. After that, you can choose your preferred policy and continue to manage your consultancy without the stress arising from potential claims.
With an office based in Melbourne, VIC, our solutions are geared to ensure suitable result for every client. We adjust our coverage to accommodate the changing needs of a recruitment consultant or a consultancy business owner.
Use our online tool for a quick quote today!
How much professional indemnity cover should I get from insurers?
The cost of professional indemnity insurance depends on your business size, services offered, and also including other contractual requirements. For your convenience, use our easy-to-use free online insurance quoting tool for more information.
Is there a standard industry insurance package from most insurers for a recruitment consultant?
It is general advice to have a combination of professional indemnity and public liability insurance to ensure the best result. But there is no one size fits all approach for recruitment insurance. Use our online quoting tool for more information on suitable insurance packages.
Do I need professional indemnity insurance even if I'm an independent recruitment consultant?
As general advice, most recruitment consultants need insurance, including independent contractors, freelance professionals or sole traders.