Recruitment businesses should identify whether they introduce candidates, supply temporary workers or provide specialist screening. The insurance comparison becomes clearer when professional placement duties are separated from employment and public-liability exposures.
The decision that deserves the closest review
Explain verification processes, client warranties and the treatment of temporary staff. Ask about screening mistakes, confidentiality allegations and liability assumed under client terms. Review the actual duties you promise rather than only the agency’s trading description.
A hypothetical example
An agency serving office roles accepts a contract for safety-critical personnel. Its existing proposal does not describe that work. The agency reviews screening obligations and obtains written underwriting confirmation before relying on the previous policy.
Professional-service allegations
Professional indemnity concerns allegations about professional services. Compare the accepted activities, claim and notification wording, prior-work provisions and exclusions. A higher limit cannot repair an activity that the wording does not accept.
Premiums, excesses and usable cover
Request quotations using the same business description, required limits and relevant dates. Put the annual premium, any instalment charges, excesses and important sublimits in one comparison. A cheaper premium can represent a different transfer of risk rather than the same cover at a better price.
| Comparison item | Question to resolve |
|---|---|
| Industries and roles being filled | Are higher-risk placements specifically accepted? |
| Temporary staffing and screening responsibilities | How do professional and employers’ liability sections interact? |
| Client warranties and placement-related fee income | Are contractual replacement or refund promises insured? |
Request the proposed wording and schedule, not just a price or certificate. Mark any difference that affects a real activity before deciding whether the premium saving is worthwhile.
Prepare an accurate insurance enquiry
Give each adviser a consistent description of the activities being insured. Include important contracts, changes since the previous enquiry and matters the insurer asks you to disclose. Do not guess answers merely to obtain a faster or cheaper quote; ask for clarification when the proposal wording is unclear.
Describe the placement model precisely
Separate permanent introductions, temporary labour supply and specialist screening in the quotation brief. For each model, identify the agency’s verification duties, the client’s checks and who employs or supervises the worker. This avoids presenting a varied staffing business as a single low-detail introduction service.
Use a typical client contract to test the proposal. Ask how a screening allegation differs from an injury involving a supplied worker or a contractual refund. If the agency accepts a new sector, update the brief with the qualifications and checks involved before treating the previous arrangement as suitable.
Include overseas work or sales in the UK business’s enquiry and confirm the accepted territories and jurisdictions.
A mistake to avoid
Assuming that an ordinary candidate-replacement guarantee is a covered insurance claim.
Check what happens after the policy starts
Ask who to contact when activities change or a potential claim arises. Understand the notification and consent process before arranging repairs, appointing specialists or settling a complaint. At renewal, compare the new documents with the accepted business description; continuity of a familiar brand does not prove continuity of every term.
Questions before choosing
Can client terms affect the quotation?
Yes, provide unusual warranties and indemnities for review so the insurer is asked about the duties actually being accepted.
Are all recruitment clients equivalent for quotation purposes?
Explain differences in roles, sectors and contractual duties. An office placement and a safety-critical assignment may need different questions even when their recruitment fees are similar.
Sources and further reading
Research date: 6 October 2026. Refer to the current linked guidance and written provider or adviser terms when making a decision.