2014 has got off to a positive start as for the first time since 2008 the British economy is showing strong signs of a sustained return to growth. In January the Confederation of British Industry (CBI) declared that business output in the private sector is rising at the fastest rate since the collapse of Northern Rock in 2007. As a result this also means that the rate of unemployment is falling as companies recover from the crisis and are looking to grow their business.
This is positive news for the recruitment industry, which plays a vital role in the recovery by providing businesses with the human resources required to facilitate growth. Recruitment firms are themselves looking to grow but at the same time there are shifting dynamics within the sector which are affecting the insurance cover that recruiters need. In an increasingly digital age LinkedIn is revolutionising the market and Twitter is fast becoming an important channel for recruiters to promote roles and reach new candidates.
This brings a wealth of opportunities but these are accompanied by a new set of risks that recruiters need to be aware of. Given that recruitment is a data business, the most obvious risk is that of a cyber attack. Recruitment firms hold a lot of valuable information, particularly candidate’s personal data, which if lost in the event of a cyber attack can be incredibly damaging for the recruitment company concerned, both financially and from the point of view of their own reputation. Many recruiters underestimate this risk, yet it is a fact that within two years of a cyber attack 25% of businesses are insolvent.
Ensuring data is backed up daily is essential to mitigate the effects of an attack, with adequate insurance in place should preventative measures fail. Buying insurance through an insurance broker that specialises in recruitment also gives recruiters access to expert advice about how to manage this and other risks tailored to their specific needs.
With this digital shift, it might seem natural for recruiters to purchase their insurance cover online. However with many recruitment firms looking to grow, and as the business model for recruitment evolves, the advice and expertise of a specialist insurance broker could prevent a recruitment firm from becoming a statistic following a cyber attack.
This post kindly provided by Tony Dines at Bluefin Insurance.