Pen Underwriting Broadens International Insurance Coverage for Recruiters
Pen Underwriting, a subsidiary of Arthur J. Gallagher & Co., has unveiled an expansion of its specialized insurance proposition tailored for recruitment agencies. This strategic move aims to bolster client support in their international expansion and diversification efforts.
The enhanced insurance policies, crafted specifically for recruiters, now include coverage for professional indemnity risks associated with placing candidates in roles in the United States and Canada – the last major overseas markets previously not covered. This extension responds to the increasing demand for UK talent to fill executive and sector-specific roles across North America.
Moreover, Pen Underwriting has introduced enhanced vicarious liability coverage for their recruiter clients. This enhancement was driven by a noticeable trend towards more complex contractual obligations and heightened legal liabilities faced by recruitment agencies. Vicarious liability typically arises in scenarios involving non-permanent placements, such as contractors and project managers, where contractual terms increasingly expose recruiters to potential liabilities for the actions or omissions of the individuals they place.
Nick Kernaghan-Andrews, the Head of Recruitment Agency Insurance at Pen Underwriting, remarked, “Recruiters are inherently entrepreneurial, adept at adapting to the evolving demands of both domestic and international labor markets, and proficient in matching candidates with suitable opportunities.”
He emphasized the importance of a comprehensive risk management strategy and robust insurance coverage to address the evolving contractual responsibilities and geographical demands. As a seasoned underwriter of recruitment industry risks, with over 25 years of experience, Pen Underwriting is committed to empowering clients to tackle the challenges and seize the opportunities inherent in their rapidly evolving industry.
Kernaghan-Andrews observed a marked shift among UK-based recruitment firms, which are increasingly looking towards the US and Canada to find new growth avenues and enhance their revenue streams amidst stagnant demand in the domestic market. This trend is particularly pronounced in sectors like high-level executive roles and IT/Tech, involving positions such as sales, designers, and developers.
He noted that the complexity of contracts for recruiters has intensified, with increased responsibilities and legal risks. In response, Pen Underwriting has introduced enhanced vicarious liability coverage for recruiters as needed, ensuring they are protected from potential liabilities stemming from the actions or omissions of individuals placed in non-permanent roles, or in cases where agencies retain contractual liability for direction, supervision, and control.
