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Recruitment Agency Insurance

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TechInsurance connects you with a licensed insurance agent who knows the recruiting insurance industry. Get quotes from top insurance companies with our easy online application to find the right coverage options for your business.

6 insurance policies every recruiter should consider

These insurance policies protect against the most common risks and liabilities in the recruiting and staffing industry.

Business owner's policy

Business owner’s policy icon

A business owner's policy, or BOP, combines general liability coverage and commercial property insurance at a discount. Low-risk small business owners are often eligible for this bundle.

  • Slip-and-fall injuries
  • Client property damage
  • Business property damage

General liability insurance

General liability insurance icon

A general liability insurance policy defends against third-party injury and property lawsuits, such as a client who suffers an injury at your recruiting agency. It's often required for a commercial lease.

  • Client bodily injuries
  • Accidental damage to a client's property
  • Defamation and copyright infringement lawsuits

Professional liability insurance

Professional liability insurance icon

Professional liability coverage handles lawsuits related to mistakes, poor advice, or other accusations of professional negligence. It's also referred to as errors and omissions insurance or E&O insurance.

  • Disagreements on what counts as "top talent"
  • Failure to fill a role with a qualified candidate
  • Listing inaccurate skillsets or employee benefits

Workers' comp insurance

Workers’ compensation insurance icon

Workers' compensation insurance protects human resources businesses and sole proprietors from work-related medical bills health insurance won't cover. Most states require coverage for employees.

  • Medical expenses from workplace accidents
  • Disability benefits for injured workers
  • Legal costs from work injuries

Commercial auto insurance

Commercial auto insurance icon

Almost every state requires commercial auto insurance for vehicles owned by a recruiting firm. It covers costs in the event of an accident involving your business vehicle.

  • Auto accident legal fees
  • Vandalism or other vehicle damage
  • Vehicle theft

Cyber insurance

Cyber liability insurance icon

Cyber insurance helps recruiters recover from costly cyberattacks and data breaches. It's also called cyber liability insurance or cybersecurity insurance.

  • Ransomware attacks
  • Client notification costs
  • Data breach investigations

Recruiter insurance costs

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From our customer data, here's a quick look at average recruiting business insurance costs:

General liability: $29 per month
Business owner's policy: $44 per month
Workers' compensation: $38 per month

Factors that insurance carriers consider when underwriting your premiums include:

  • Your recruitment services offered, such as sourcing, executive search, and talent acquisition
  • Number of employees
  • Value of your business property
  • Types of insurance products purchased
  • Coverage limits and deductibles
  • Claims history
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Get insurance fast so you can get started working with clients. Fill out our easy online application, choose a policy, and pay online to start coverage today.

Recruiter discussing a position with a client.
Get insured quickly with TechInsurance
Get insurance fast so you can get started working with clients. Fill out our easy online application, choose a policy, and pay online to start coverage today.
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Insurance shows clients your business is reliable, and some contracts even require it. View and print your certificate of insurance anytime with TechInsurance.
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Common questions about recruitment company insurance

Review answers to frequently asked questions (FAQs) about recruitment agency insurance coverage and more.

Do self-employed headhunters need insurance?

While self-employed recruiters might not be required by law to carry insurance, having coverage can help you fulfill contract terms and protect your business from financial risks and liabilities.

Some states might require you to carry professional liability insurance (sometimes called errors and omissions coverage or E&O) in order to start up a recruiting agency or work within certain facilities.

This policy provides protection in the event of a lawsuit filed by a hiring manager over the recruitment process, hiring process, or even what is the best talent or a good cultural fit.

Additionally, you should keep in mind your personal auto insurance policy likely won’t cover work-related accidents, such as a collision while you're driving to meet a client.

For protection of your business-owned vehicles, you'll need commercial auto insurance. This policy covers legal fees, medical expenses, and other related costs if your company-owned vehicle is involved in an accident. For personal, leased, and rented vehicles used for work purposes, look to hired and non-owned auto insurance (HNOA).

Similarly, personal health insurance policies won't cover work-related injuries and illnesses. That means you would have to pay hefty medical bills out of pocket if you suffer an injury on the job or develop an occupational illness.

Carrying a workers’ compensation plan, even if you're a sole proprietor or limited liability company (LLC) with no employees, can financially protect you if you’re unable to work due to an on-the-job injury or illness, as well as cover your healthcare bills.

What other types of insurance coverage do recruiters need?

There are several types of insurance recruiting and staffing agencies should consider as part of their risk management plan, including:

Another common protection for recruiting businesses is a hold harmless agreement, also called an indemnity agreement. In short, it's a contract in which those who work with you agree they will refrain from suing your business in certain situations.