Why Recruitment Agencies Need PI

Why Recruitment Agencies Need PI

Why Recruitment Agencies Need PI

22 Oct 2018

Are you an owner of a recruitment agency? Read on to find out why you will need insurance and professional indemnity to help protect you and your staff.

Why Recruiting Agencies Need Professional Indemnity

Owning an agency or business in any profession that offers advice or a service can always lead to potential disagreements between you and the customer. Offering knowledge, skills, or information can leave you vulnerable to a compensation claim. And while your company as a whole may try their best efforts to offer seamless services to keep a customer happy, there is always a risk that a client may hold you liable for damages, professional negligence or accountable for financial losses. In today’s business world, the threat of an insurance claim is high. If a client believes you to be responsible they will act upon it, right or wrong. If your company is a recruitment agency there are high risks for making an error in judgment when offering a jobseeker to a potential employer. These errors can occur in various ways such as failing to assess a person’s suitability for the offered role, suggesting that there has been failure in assisting the employers search for candidates. By insuring yourself you protect yourself from any claims that might embarrass your company’s reputation. Yet it’s not only during a process, but actually after a completed briefing, that issues can arise. Things can still go wrong with a candidate placement that you have arranged, leading to financial loss. As a recruitment agency professional, there are many areas in your industry that you need to protect.

How does PI (Professional Indemnity) help provide financial security?

It is through Professional Indemnity, or PI, that a business can protect themselves against these legal claims. This type of insurance, along with Professional liability, can often be what saves a company’s reputation and removes the threat of bankruptcy. It covers the cost of defending your recruitment consultancy against any allegations against your professional service. Despite the inherent usefulness of Professional Indemnity it still holds a negative stigma that it is an admission of bad practice or incompetence. Many avoid insuring their company for these reasons and end up regretting their choices later on down the line. While you should as a company hope not to experience a customer’s claims it is worth remembering that they are probable, and that Professional Indemnity is actually validation of your commitment to provide a professional insurance service to your client in the event of a legal issue.

Why Recruiting Agencies Need Professional Indemnity

Owning an agency or business in any profession that offers advice or a service can always lead to potential disagreements between you and the customer. Offering knowledge, skills, or information can leave you vulnerable to a compensation claim. And while your company as a whole may try their best efforts to offer seamless services to keep a customer happy, there is always a risk that a client may hold you liable for damages, professional negligence or accountable for financial losses. In today’s business world, the threat of an insurance claim is high. If a client believes you to be responsible they will act upon it, right or wrong. If your company is a recruitment agency there are high risks for making an error in judgment when offering a jobseeker to a potential employer. These errors can occur in various ways such as failing to assess a person’s suitability for the offered role, suggesting that there has been failure in assisting the employers search for candidates. By insuring yourself you protect yourself from any claims that might embarrass your company’s reputation. Yet it’s not only during a process, but actually after a completed briefing, that issues can arise. Things can still go wrong with a candidate placement that you have arranged, leading to financial loss. As a recruitment agency professional, there are many areas in your industry that you need to protect.

How does PI (Professional Indemnity) help provide financial security?

It is through Professional Indemnity, or PI, that a business can protect themselves against these legal claims. This type of insurance, along with Professional liability, can often be what saves a company’s reputation and removes the threat of bankruptcy. It covers the cost of defending your recruitment consultancy against any allegations against your professional service. Despite the inherent usefulness of Professional Indemnity it still holds a negative stigma that it is an admission of bad practice or incompetence. Many avoid insuring their company for these reasons and end up regretting their choices later on down the line. While you should as a company hope not to experience a customer’s claims it is worth remembering that they are probable, and that Professional Indemnity is actually validation of your commitment to provide a professional insurance service to your client in the event of a legal issue.

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32-38 Dukes Place

5th Floor

London, EC3A 7LP

United Kingdom


+44 (0) 207 2250000

info@servca.com


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Republic of Malta


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Northern Ireland

Servca Northern Ireland
River House Belfast

48-60 High Street

Belfast

BT1 2BE



+44 (0) 2895582000

ni@servca.com


Broker at Lloyd’s SLM1389

© 2024 Servca


Servca Group Ltd is a private limited company registered in England and Wales; Registered Number: 7727494; Registered Office: Dukes House, 32-38 Dukes Place, 5th Floor, London, EC3A 7LP, United Kingdom. Authorised and regulated by the Financial Conduct Authority. Servca European Insurance Brokers Ltd (a private limited company incorporated in Malta and enrolled to act as an insurance broker); Tower Business Centre, Level 3, Tower Street, Swatar, BKR, 4013, Republic of Malta. UK branch office is registered in England and Wales, authorised and regulated by the Financial Conduct Authority. Servca Canada Insurance Group Inc, a private limited company incorporated at 40 King Street West, Suite 2100, Toronto, M5H 3C2, Canada. Servca group of companies are owned and operated by Servca Group Holdings Ltd, a private limited company registered in England & Wales.

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Global Headquarters

Servca Group

Dukes House

32-38 Dukes Place

5th Floor

London, EC3A 7LP

United Kingdom


+44 (0) 207 2250000

info@servca.com


Broker at Lloyd’s SLM1389

European Office

Servca Europe

Dragonara Business Centre

Dragonara Road

5th Floor

St Julian’s, STJ 3141

Republic of Malta


+356 (20) 341690

eu@servca.com


Broker at Lloyd’s (Brussels) SLM1883

Canadian Office

Servca Canada Insurance Group Inc
40 King Street West
Suite 2100
Toronto
M5H 3C2
Canada


+1 (647) 846 5555

canada@servca.com


Non-regulated servicing company

Northern Ireland

Servca Northern Ireland
River House Belfast

48-60 High Street

Belfast

BT1 2BE



+44 (0) 2895582000

ni@servca.com


Broker at Lloyd’s SLM1389

© 2024 Servca


Servca Group Ltd is a private limited company registered in England and Wales; Registered Number: 7727494; Registered Office: Dukes House, 32-38 Dukes Place, 5th Floor, London, EC3A 7LP, United Kingdom. Authorised and regulated by the Financial Conduct Authority. Servca European Insurance Brokers Ltd (a private limited company incorporated in Malta and enrolled to act as an insurance broker); Tower Business Centre, Level 3, Tower Street, Swatar, BKR, 4013, Republic of Malta. UK branch office is registered in England and Wales, authorised and regulated by the Financial Conduct Authority. Servca Canada Insurance Group Inc, a private limited company incorporated at 40 King Street West, Suite 2100, Toronto, M5H 3C2, Canada. Servca group of companies are owned and operated by Servca Group Holdings Ltd, a private limited company registered in England & Wales.

Privacy Policy

Cookies

Global Headquarters

Servca Group

Dukes House

32-38 Dukes Place

5th Floor

London, EC3A 7LP

United Kingdom


+44 (0) 207 2250000

info@servca.com


Broker at Lloyd’s SLM1389

European Office

Servca Europe

Dragonara Business Centre

Dragonara Road

5th Floor

St Julian’s, STJ 3141

Republic of Malta


+356 (20) 341690

eu@servca.com


Broker at Lloyd’s (Brussels) SLM1883

Canadian Office

Servca Canada Insurance Group Inc
40 King Street West
Suite 2100
Toronto
M5H 3C2
Canada


+1 (647) 846 5555

canada@servca.com


Non-regulated servicing company

Northern Ireland

Servca Northern Ireland
River House Belfast

48-60 High Street

Belfast

BT1 2BE


+44 (0) 2895582000

ni@servca.com


Broker at Lloyd’s SLM1389

© 2024 Servca


Servca Group Ltd is a private limited company registered in England and Wales; Registered Number: 7727494; Registered Office: Dukes House, 32-38 Dukes Place, 5th Floor, London, EC3A 7LP, United Kingdom. Authorised and regulated by the Financial Conduct Authority. Servca European Insurance Brokers Ltd (a private limited company incorporated in Malta and enrolled to act as an insurance broker); Tower Business Centre, Level 3, Tower Street, Swatar, BKR, 4013, Republic of Malta. UK branch office is registered in England and Wales, authorised and regulated by the Financial Conduct Authority. Servca Canada Insurance Group Inc, a private limited company incorporated at 40 King Street West, Suite 2100, Toronto, M5H 3C2, Canada. Servca group of companies are owned and operated by Servca Group Holdings Ltd, a private limited company registered in England & Wales.

Privacy Policy

Cookies