A 2014 study of the REC recently revealed that 46% of employers plan to increase temporary staff during 2015. It has been suggested that the demand for engineering, technical and healthcare workers has fueled this increase.
These sectors tend to impose non standard contracts when utilising recruiters for their temporary staff, which will need to be reviewed to ensure the correct insurance cover is in place.
Standard Contracts
Usually issued by recruiters telling the hirer they are not responsible for the negligent acts, errors and omissions of temporary workers supplied. This reduces the risk in the eyes of the insurer and leads to lower premiums.
Non standard contracts
When hirers insist on using their own terms and conditions, they make the recruiter responsible for the actions of the temporary worker supplied. The recruiter therefore could be held liable and this additional risk is reflected in higher premiums.
Getting the right cover
Some insurers exclude the additional risks arising by the use of these non standard contracts, with conditions and warranties on their policies. In most cases, insurers will have to be informed of these non standard contracts, which takes time and may incur costs of legally vetting the wordings of the contracts.
At Jelf Manson, the policies we arrange do not include a contractual liability exclusion which means you enjoy wider cover, protecting your business more comprehensively. If the recruiter enters into a nonstandard contract (either intentionally or otherwise) cover exists under the Recruiters Choice policy.
At the start of the policy year, a review of standard/non standard contracts is undertaken and insurers charge the appropriate premium. This provides clients with maximum flexibility to trade through the year, safe in the knowledge that insurers are fully aware of the higher risk of the non-standard contracts.
We offer a contract vetting service, providing advice relating to the insurance aspects of the contract. Provided to all of our clients at no additional cost, this delivers added values to the comprehensive cover available under the Recruiters Choice policy.
Print 
PDF
