Business insurance for Recruitment consultants

Our range of insurance products aims to protect the long-term health of your recruitment consultancy as you work to match candidates to positions.

Whether it’s employers’ liability insurance to ensure your recruitment consultancy meets regulations, or cyber insurance to protect you in the event of a data breach, commercial cover can offer support in several ways.  

Meanwhile, professional indemnity insurance for a recruitment agency may help with legal costs relating to client disputes. 


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Why choose Hiscox for recruitment insurance?


Flexible cover from £8.40 a month*

Our insurance for recruitment firms is flexible and tailored – plus, it starts at just £8.40 a month.


*Figures based on an average of all business insurance policies sold to at least 10% of our customer base between January 2023 and January 2024


Award-winning team

The Hiscox claims team can help you to prevent problems  – and fix them quickly if they arise.


Pay monthly and cancel with no fees

Your staffing agency can pay monthly for insurance, make unlimited changes and receive no cancellation fees.

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Tell us about your business – We’ll help you to build your quote and explore your insurance needs.

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Why do recruitment consultants need insurance?

Missing a reference check

You run a busy recruitment agency and take great pride in the quality of your matches. But mistakes can be made in such a fast-paced environment. When your newest graduate recruiter recommends a candidate without completing thorough reference checks, it could cost more than just your pride.  

Professional indemnity insurance might prove useful for your recruitment agency if a client takes you to court over an alleged mistake. It may assist with covering the cost of settling or defending a claim. 

An office injury

When a potential candidate visits your staffing agency headquarters, they trip on a stray power cable near your interview room and test centre. Unable to showcase their skills, the visitor leaves without being checked into your staffing system. But this may be the least of your concerns.  

Scans show the injury was more severe than anticipated and a claim is brought against you. Public liability insurance may help your recruitment consultancy to cover the costs of fighting the claim, including any compensation payouts.

Accidental data loss

The week begins as usual. But by Tuesday, your systems have been locked by malicious software – and the hacker has stolen confidential data. As a recruitment consultant, you work with databases every day to process candidates and give commercial partners informed advice. It’s the modern way, but also leaves you vulnerable to cyber risks.  

Our cyber and data insurance could support a recruitment consultant with the cost of data recovery – acting fast, since we know your time is precious. 

What insurance is available for recruitment consultants?

Recruitment is diverse, so each company’s risk profile will be unique. A range of other products, including public liability, legal protection, cyber insurance and personal accident insurance, may support your enterprise, whether you’re a self-employed consultant or part of a growing agency.

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Not sure what you need?

These are just some of the types of business insurance for recruitment consultants that we can offer. We can provide other specific types of cover and build them into a policy that’s tailored to your exact needs.

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Insurance for recruitment consultants: FAQs

Does recruitment insurance cover candidates placed with clients?

There are two types of insurance for recruitment agencies. The version you select will determine whether cover applies to your business activities alone, or if it also covers your recruits’ work for clients.

Non-vicarious insurance for recruitment firms does not cover candidates you’ve placed – it applies only to your business, its direct employees and activities. 

This means employers’ liability insurance only covers claims from a recruitment agency’s own employees, and not the recruits it secures placements for. Likewise, non-vicarious professional indemnity insurance would not cover claims of negligence by staff your agency has placed with a client.

However, vicarious insurance also covers risks related to your casual staff, such as claims of negligence.

The best way to determine which insurance is right for your recruitment business is to review client contracts. Some stipulate that recruiters are only responsible for finding and placing staff, while others say recruiters also take responsibility for candidates and their work. 

What insurances do you need for a recruitment agency?

The insurance you’ll need to start a recruitment agency depends largely on how the business will operate. Asking yourself a few key questions may help to determine which covers you’ll need. For example:

  • Does your plan involve a period of home working as the agency’s sole employee?  
  • Will you hire staff?
  • Will you require a separate workplace?  

If you’ll employ staff, employers’ liability cover could be required by law. Some larger clients may also ask you to have public liability or professional indemnity insurance. They might stipulate this in a contract. Also, it could be a requirement of joining your relevant industry body.  

How much business insurance cover should a recruiter take out?

A recruitment consultancy’s exact insurance requirements will ultimately come down to its circumstances.  

Recruitment businesses face differing levels of risk. Some focus on small projects, while others provide staff to large employers and events across the UK. Since the amount at stake may shape the scale of disputes, you may want to consider the size of your recruitment accounts when deciding how much insurance to purchase.  

The limit of cover you set helps shape the cost of insurance. It’s also the maximum amount you’ll be able to claim for legal fees, compensation payouts or repairs. 

Do self-employed consultants need insurance?

As a self-employed recruitment consultant, it’s likely you’ll be giving advice to the clients and companies you work with. If the advice you give is revealed to be poor, or results in a financial loss, clients may decide to sue you for damages – and you could be personally liable.  

Professional indemnity insurance could provide financial help with both legal costs and compensation payments. Learn more about business insurance options if you’re self-employed