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18 July 2016

Recruitment Insurance - Are you sitting comfortably? FOO

Recruitment Insurance - Are you sitting comfortably?
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Since 2010 and 2015 the UK recruitment industry revenue has grown to over £28bn – an increase of more than 44%. Temps placement has grown to 91% of recruiters’ revenues and increased the risks recruiters face *.

Your temp, your fault

Times are changing and in an increasingly competitive market, recruitment firms are being pressurised by their customers to sign contracts where the recruitment agency and not the customer are being held responsible for damage, injury or theft caused by the temps that they supply.

When a big contract has been won and you are looking to progress it may seem that looking at the fine print of the contract or accepting the hirer’s contract makes good business sense. But we warn you that with the emphasis put back on the Recruitment Agency you may find that your standard insurance package is not up to scratch and that your Agency finds itself in financial difficulties with no support.

Faced with these growing pressure to sign contracts containing more and more onerous conditions, Mike Jones of Arthur J. Gallagher says “push back and insist on the use of your standard terms — as that will afford you the best protection”.

Jones explains: “In any claim, what needs to be established is who had direction, control and supervision when the accident occurred. This is normally clear cut where an agency is supplying labour under their standard terms of business, which makes the hirer fully aware of what their responsibilities are for directing, controlling and supervising temporary workers.”

Getting the right support from industry specialists can help you take advantage of the growth in the recruitment sector while minimising the risks to your business.

At Arthur J. Gallagher Recruitment Insurance we can explain how to challenge unreasonable terms in contracts to supply temps. It’s part of the service we provide to the recruitment industry. There is no obligation and no cost to you to find out how we can help.

*MarketLine Industry Profile Employment Services in the United Kingdom January 15, 2015.

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