Employment agency insurance is a necessity rather than an option.
You may have found already that an increasing number of clients expect you to have full professional indemnity insurance before you have any prospect of acquiring preferred supplier status.
If you have your own staff, you’re required by law to have employers’ liability insurance.
And if members of the public visit your offices, or you ever visit clients’ premises - both of which are almost certainly true for you - most people will tell you it would be foolhardy to operate without public liability insurance.
So the three main elements of an employment agencies insurance package are all pretty much a prerequisite. Which means it can be easy to lose sight of what you’re actually insuring yourself against. In short, you’re insuring yourself against being sued.
UK society is becoming more litigious. We may still have a way to go but we’re heading in the same direction as the US. Hardly surprising given the proliferation of ‘no win, no fee’ legal services and ‘where there’s blame, there’s a claim’ attitudes.
And there are plenty of scenarios which could lead to an employment agency being sued.
A candidate you’ve placed falls short of expectations and the client accuses you of professional negligence in recommending him. A visitor to your offices trips over a cable running across the floor (and, of course, you’ve been meaning to do something about it for ages but...) and injures herself. One of your own employees inadvertently reveals some confidential client information resulting in damage to that client’s reputation.
In all of the above cases, and there are many more possible examples, you could be faced with having to fund very large legal bills (even if it’s not your fault) and possibly an even larger compensation award.
So never mind winning new business. Without employment agency insurance, you could find yourself out of business altogether.
Worth remembering don't you think?
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