Pen Underwriting expands international cover for recruitment agencies to empower client growth and diversification
Published On : 27 Feb 2025
Pen Underwriting has expanded and enhanced its specialist insurance proposition for recruitment agencies, to support clients’ international growth strategies and help them respond to increasing legal liabilities arising from contractual complexities.
With immediate effect, Pen’s international and multi-section insurance policies customised for recruiters can now cover the professional indemnity risk of placing candidates into positions in the US and Canada – the only overseas territories not previously covered. This optional extension is in response to rising demand for UK talent to fill executive and sector-specific positions in those territories.
Enhanced vicarious liability cover is also now available for recruiter clients, in response to a trend of increasing contractual complexities and legal liability for recruitment agencies. Vicarious liability arises in relation to non-permanent placements, such as contractors and project managers, with contracts now effectively increasing the likelihood of the recruiter being held responsible for the actions or omissions of the individual once in role.
Nick Kernaghan-Andrews, Head of Recruitment Agency Insurance at Pen Underwriting, said: “Recruiters are highly entrepreneurial by nature, skilled at flexing to meet the changing demands of the domestic and international labour markets and match candidates with opportunities. But they need to ensure their risk management strategy and insurance protection covers the full range of liabilities they are potentially facing as contractual responsibilities and territorial demands shift.
“As a long-term underwriter of recruitment industry risks – with Pen holding more than 25 years’ experience, data and insight – our role is to enable clients to meet the challenges and opportunities of their fast-evolving industry head-on. To do that we continually review our proposition, enhancing cover where appropriate in ways that support clients’ growth and diversification agendas.”
He continued: “The fact is that a lot of UK-headquartered recruiters are looking to overseas markets for growth opportunities and to boost turnover, especially the US and Canada, amidst flat levels of demand in the domestic economy. This is particularly true for executive positions and the IT/Tech space for sales, designers and developers. Similarly, contracts are becoming more onerous for recruiters when it comes to taking on responsibility and legal liability. Hence our introduction of enhanced vicarious liability cover for recruiters, where required, for the actions or omissions of individuals they place in non-permanent roles or for those agencies who retain contractual liability for direction, supervision and control.”
Pen’s multi-section policies for all types of recruitment specialists – regardless of size or sector, from micro and SME through to corporate agencies – can cover public and product liability, employers’ liability, professional indemnity including enhanced vicarious liability, cyber risks, personal accident for temps of agencies’ own staff, office buildings and contents, drivers’ negligence, fidelity bonding, legal expenses, directors’ & officers’ liability and business interruption.
