How much is recruiter insurance?

General liability insurance for recruiters costs an average of $29 per month, or $350 per year.

General liability insurance covers accidents that injure someone outside your business or damage their property. For example, if a client trips on a power cord in your office and suffers a concussion, this policy would pay for their medical bills, or your legal defense costs if they sue. It would also pay for repairs if they broke their smartphone in the fall.

General liability insurance also covers copyright infringement, defamation, and other advertising injuries. It can pay for accusations that you published a photo of a client on your website without permission, or slandered a competitor on social media.

You might need general liability coverage to sign a commercial lease, secure a contract with a larger client, or get a business license. It shows your clients and partners that they're protected against financial losses from the most common risks.

Below is the average general liability policy for recruiters who buy from TechInsurance:

Premium: $29 per month
Policy limits: $1 million per occurrence; $2 million aggregate

The cost of general liability insurance depends on numerous factors, including your business operations, the policy limits and deductible you choose, the size and location of your business, the number of employees you have, and any exclusions or endorsements on your policy, such as an additional insured.

Recruiting businesses pay an average of $44 per month, or $530 per year, for a business owner's policy (BOP).

A business owner's policy bundles general liability coverage with commercial property insurance at a lower cost than buying these policies separately. You can often add other types of coverage as well.

A BOP provides insurance for your office in the event of a fire, storm, or theft. It also protects against common liability claims related to bodily injuries and property damage, such as a headhunter who accidentally drops a client's laptop and breaks it.

Common add-ons include business interruption insurance (or business income coverage) to cover employee wages and other operating costs during a temporary closure.

This is the average business owner's policy for recruiting firms that buy from TechInsurance:

Premium: $44 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500

Businesses that are eligible for a BOP usually are small in size (fewer than 100 employees) and low risk.

The cost of a business owner's policy depends on factors such as the value of your business property, the policy limits you choose, and your location.

Recruiting businesses spend an average of $38 per month, or $457 annually, on workers' compensation insurance.

Workers' comp pays for medical expenses and disability benefits in the event of a employee injury. For example, if a headhunter trips on a broken step at a client's business and breaks their ankle, this policy would pay for their medical treatment and lost income while they recover.

Workers' compensation policies usually include employer's liability insurance. This type of coverage pays for legal costs if an employee sues their employer over an injury.

State laws often require businesses to secure workers' comp as soon as they hire their first employee, but that's not always the case. It's required in California and New York for every business with employees, in Florida for every business with four or more employees, and it's optional for most companies in Texas.

Even though workers' comp may not be required for sole proprietors or independent contractors, such as a recruitment consultant who works independently, it's still recommended. Medical bills are expensive, and most health insurance plans can deny claims for injuries that happen on the job.

The cost of workers' compensation mostly depends on the number of employees you have and the recruiting services you offer. Other factors, such as the cost of healthcare in your state, can also affect your premium.

On average, recruiters pay $82 per month, or $988 per year, for professional liability insurance.

Professional liability insurance covers lawsuits related to professional negligence. It would pay for attorney's fees and other legal expenses if a headhunter failed to find an appropriate candidate by an agreed-upon deadline, or if a recruiter made a mistake on an employment form.

You might also see this type of coverage referred to as errors and omissions insurance (E&O) or professional indemnity insurance for recruiters. Partners and clients might require you to carry professional liability coverage, as it'll pay for legal bills that might otherwise impact them.

This is the average professional liability policy for recruiters who buy from TechInsurance:

Premium: $82 per month
Policy limits: $1 million per occurrence; $1 million aggregate
Deductible: $1,000

Insurers consider several factors when determining professional liability insurance costs, including the coverage limits and deductible you choose, the size of your firm, the type of professional services you provide, and your claims history.

Professional services businesses, including recruiters, pay an average of $163 per month, or $1,954 per year, for commercial auto insurance.

If your company vehicle gets into an accident, this policy will help pay for any damages you caused. It will also cover your legal fees if you're sued.

You can buy coverage for other risks as well. For instance, collision insurance will pay for repairs if your vehicle is damaged in a collision, while comprehensive coverage pays for damage to your vehicle from other sources, such as hail, theft, and vandalism.

Almost every state requires this insurance coverage for businesses that own a vehicle, as personal auto insurance won't cover business driving. To protect personal, rented, and leased vehicles used for work, you'd need hired and non-owned auto insurance (HNOA) instead.

The cost of commercial auto policies can vary considerably. Some of the most important factors are your employees' driving records, the policy's limits and deductible, the number of vehicles you own, and the coverage options you choose.

The average cost of cyber insurance for professional services businesses, including those that work in recruiting, is $123 per month, or $1,480 annually.

This policy covers expenses related to cyberattacks and data breaches. It can pay for data breach investigations, provide reimbursement for ransomware payments, and help with costly customer notifications, which may be required by state laws after a breach.

Cyber insurance is crucial for recruiting firms that store personal information, such as Social Security numbers, email addresses, or bank account numbers belonging to clients or jobseekers. It's sometimes called cyber liability insurance or cybersecurity insurance.

The cost of cyber insurance primarily depends on the type of business you own and the amount of sensitive information handled by your company.