Pen Underwriting, the London-based managing general agent, 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 customized 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, Pen explained.
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.
“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,” commented Nick Kernaghan-Andrews, head of Recruitment Agency Insurance at Pen Underwriting.
“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,” Kernaghan-Andrews added.
“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,” he said.
“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,” Kernaghan-Andrews said.
“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,” he continued.
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.
About Pen Underwriting
Pen Underwriting is a multi-class, multi-territory managing general agent (MGA) that operates as a virtual insurer, meaning it can fulfill all the typical functions of an insurance company — from underwriting, sales & distribution, pricing & analytics, product innovation, risk & governance through to claims handling — other than the provision of insurance capital.
A subsidiary of the broker Arthur J. Gallagher & Co., Pen Underwriting operates with five divisions — International, UK Financial Lines & Specialist Liability, Public Sector, SME & Personal Lines and Specialty Lines.
Topics Agencies Insurance Wholesale
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