With falling unemployment rates in the UK we recognise that the recruitment industry has entered a period of economic growth. During such times the priority for sector is likely to be developing candidate and client pools but it’s important for recruitment companies to ensure they have the right insurance programme in place to protect it should the worst happen.
As a specialist broker in the recruitment sector Bluefin offer insurance solutions which look to protect recruiters for their specific business activities without incurring unmanageable premium costs.
Of course it’s important that any insurance policy is not only competitive in terms of the premiums payable but also brings with it the right cover for the specific risks that recruitment companies face in this ever-evolving sector. Through their wide access to the insurance market Bluefin develop innovative insurance solutions for the UK recruitment market.
As part of the offering for recruiters Bluefin also have an exclusive arrangement with an A-rated insurer that is brand new to the UK market. This means that every recruitment business that Bluefin speaks to, will never have previously obtained a quotation from this insurer before. Offering the ability to provide a genuine comparison against existing policies in place for business.
Toni Dines, Head of Practice for recruitment insurance at Bluefin has established herself as an expert in the recruitment market in insuring recruiters over the last 8 years. This specialism was moulded from working as a recruiter herself, working with recruiters, umbrella companies and the contractors that work within these organisations during this time. Through correlation with leading industry partners and monitoring movements in the UK through the likes of APSco and the REC, Bluefin are ever acclimatising to the sectors changing legislation, trading practices and the products and services offered certainly reflect that.
Commenting on Bluefin and her appointment, Toni said: “I have a true, homebred passion for the recruitment sector and providing insurance solutions so I am delighted that at Bluefin we can support recruiters through investing in inventive product development and delivering services and solutions to clients that I am proud of.
With more than 450 recruitment clients in the UK already, we have identified significant opportunities to provide recruitment insurance solutions that are keeping up with the pace of change in the market and which makes us the ideal partner for recruitment agencies.”
Mark Westgarth, Managing Director of Bluefin Professions, commented “Within the business we have a number of recruitment clients and Toni’s appointment will not only ensure we continue to provide the very best service but will also enable us to grow this exciting & vibrant sector. Using her skill & knowledge we’ve developed a brand new & market leading offering that provides full cover for recruiters in the modern age”.
What types of insurance policies would you expect a recruitment agency to purchase?
Due to the nature of work that recruiters undertake, they are likely to require some specific covers as well as the standard covers that all businesses need, including but not limited to:
- Employers’ Liability Insurance
- Public and Products Liability Insurance
- Directors’ & Officers’
- Professional Indemnity Insurance
- Personal Accident
- Senior Executive Replacement Cover
- Offshore Liability Insurance
- Drivers Negligence
- Fidelity Bonding
- Property and Contents
- Business Interruption
- Legal Expenses
- Medical Malpractice
- Cyber Liability Insurance
- Privacy Breach Response
- Trade Credit Insurance.
Cyber Liability in the recruitment sector
Are recruiters aware of the risks and financial implications of such an attack?
Another pressing risk in the UK let alone the recruitment sector is Cyber attack and subsequent data protection. From ICO statistics published on their website Q3 last year, recruitment was the 11th highest category of data breach incidents.
This concerning statistic is not hackers as much as human error that leads to data breach within recruitment business.
James Mullock – Head of Data Privacy and protection at Osborne Clarke offered the following advice:
“Recruiters must remember that if their websites are hosted, managed or maintained by a third party they are still responsible for protecting their user’s data. Therefore, ensuring that you’ve contractually agreed with your supplier the appropriate technical safeguards to protect your users’ data and robust liability apportionment provisions if they fail to do so, is essential. Getting the supplier contract right is even more important where that supplier sources some of their support from outside the EU, as this is where the complicated data transfer laws come into play.
Where recruitment consultants are using social and professional networking sites their employers need to have clear policies in place to protect personal data. They also need to make sure work done on the sites belongs to the employer rather than the consultant.”
Toni Dines of Bluefin offered her comments on the topic- “The recruitment industry is a digital sector. Given that recruitment is a data business, the most obvious risk to the business is a cyber attack. Recruiters hold lots of valuable information which if lost in an attack can be incredibly damaging, financially and in reputation. Ensuring data is secure is vital to mitigate the effects of such an event but adequate insurance to forensically handle the attack, deal with the breaches, notifications to individuals and then maintain 12 months of adequate monitoring are vital.”
What is the cost of Bad debt?
Bluefin’s trade credit team are noticing recruitment companies making the most of the opportunities for growth in the UK at the since the recession.
With that growth could be the need to offer open credit terms to existing and new customers, thus increasing the likelihood of a Bad Debt.
So how does a recruitment company fulfil its growth ambitions while minimising the amount of risk it exposes itself to?
Recruiters that choose to work with Bluefin Trade Credit are given true line of sight on the solvency of their own customers and new business prospects. They are then able to focus their sales and service efforts to where the best returns can be made – growing customers that require more personnel and most importantly, that pay. As they grow – so do you.
- Very competitive premiums for specialist cover, not just bad debt protection.
- An independent, thorough and unbiased review of all the market options.
- Work done, not yet invoiced.
- Unsigned timesheets.
- Queried invoices.
- Self-billing arrangements.
- Quick turnaround times on credit limit decisions and claims payments.
- The option to add your Invoice Finance provider as Loss Payee or Joint Insured.
Why should you obtain a quotation from Bluefin for your recruitment business insurance?
- 0% direct debit facility for premiums payable -subject to status
- Specialist Recruitment Team – Expert recruitment insurance sector knowledge and insight
- Exclusive arrangement with a Global ‘A Rated insurer’ with a brand new product to the UK recruitment market offering a genuine comparison to renewal policies
- Vicarious Liability Cover included as standard with no additional premium for non standard contracts
- Senior Executive Replacement Insurance at no additional cost. Insurers will pay up to £50,000 in recruitment fees for the replacement of a senior executive or director resulting from death or serious illness.
- Cyber Liability cover and Breach notification services with 12 month monitoring services on individuals victim to breach
- Specialist Trade Credit team with an established recruitment client base and recruitment sector account executive
- Bluefin insure some of the top 100 recruitment firms and offer key support for new start up’s and are perfectly placed to handle SME requirements.
- Fantastic relationships with some of the top industry partners in the recruitment sector, diversifying sector knowledge and connections
Head of Practice – Bluefin
Bluefin, Cutlers Exchange, 123 Houndsditch, London EC3A 7BU
m: 07551 127817 e: [email protected]
Website link to Bluefin Recruitment Team