Recruitment Insurance – is your Vicarious Liability properly insured?

There are a lot of Recruitment Insurance products out there in the market that claim to offer vicarious liability for placed personnel. However, some of these products exclude any liability which is assumed under contract. This means that the vicarious liability provided will not cover claims where you are contractually liable for the acts of the worker supplied, which is actually the only time you will be deemed legally liable.

In this instance, the vicarious liability cover will only apply if a claim arises first out of the wrongful acts of the recruitment agency.

An example of this would be when a mistake is made by the recruitment agency in the vetting process which leads to the misrepresentation of a candidates experience or qualifications. The candidate is then wrongly placed into a role in which they make a fatal error. The hiring client in turn sues the agency over the suitability of the placed worker resulting in a claim for professional negligence. This cover would already be picked up under the Professional Indemnity Insurance policy.

For further information contact Tony Gibbs on 0118 9165 485.

Author: Tony Gibbs | August 13, 2013

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