Guest blog by REC-accredited partner Marsh Commercial.

Recruitment agencies and recruitment consultants are exposed to many risks when placing permanent and temporary staff into new roles.

A client claiming you've been negligent when undertaking reference checks on a candidate, an employee injured at work or a cyber-attack leaking personal candidate data. The risks are wide-ranging, and so are the types of insurance cover available to protect against them.

What is recruitment insurance?

Whether your recruitment business is well-established or new to the market, it's essential to consider the insurance cover you may need. Standard policies may not provide the specific cover to protect against the risks you face. For example, if your office is home-based, your home contents insurance will not include your work-related laptop. If you place temporary staff, you may be regarded as their employer, making you liable for any negligent actions.

Having the right insurance in place to protect your business is crucial:

• professional indemnity to cover costs of settling or defending a claim
• liability cover to help protect your business, colleagues, and contractors
• cyber insurance to protect against hacker damage and cyber extortion
• protection in the event of a public relations crisis, should you need to manage adverse publicity
• directors and officers liability and corporate legal liability cover up to £100,000.