An Australian recruitment agency’s insurance needs are often shaped by its contracts, rather than a blanket legal requirement. Insurance is generally not legally required for recruitment consultants, but a work contract may require Professional Indemnity or Public Liability cover. Choosing insurance for a recruitment agency means looking beyond the policy limit to what the wording actually protects.It’s understandable to want clarity about what’s covered, particularly when agency staff, contractors and candidates each bring different risks. This guide explains common cover, how to choose limits, and how policy scope, vicarious liability and retroactive cover can affect protection. Use these points to compare your options and spot potential gaps. Key Takeaways Set cover limits around the contracts you want to win and the scale of potential claims, not just your agency’s current size. Review policy wording for exclusions, sub-limits and who is covered, especially where staff, contractors or labour hire placements are involved. Understand how the retroactive date affects cover for work completed before the current policy began. Build your insurance decisions around your placement model, operations and contractual requirements so the cover fits the risks you actually face. Table of Contents Choosing cover limits and avoiding underinsurance How to buy recruitment insurance Policy scope, vicarious liability and retroactive cover MyGen Insurance Brokers Choosing cover limits and avoiding underinsurance To compare insurance quotes, match the cover limits, policy scope, exclusions and excesses against the contracts your agency accepts. Choose limits that meet those contract requirements and reflect the potential scale of claims arising from your placements.Start with client agreements and tender documents. Note the required limits for Professional Indemnity and Public Liability, then compare them with the limits in each quote. A lower premium may come with less cover or narrower protection, leaving a gap. For example, a policy might meet one client’s requirements but fall short when a new contract sets a higher limit.Next, match the policy to the work your consultants actually perform. Permanent recruitment, executive search and labour hire can involve different exposures. Consider the roles you place, the industries you serve and the potential consequences of an alleged error. Technical roles, for example, may involve duties or specialist requirements that differ from office-based placements. Review exclusions and sub-limits as well as the headline limit, since they can restrict cover for specific activities or claims. List contract limits and renewal dates. Compare quotes with the same cover types and limits. Identify exclusions affecting your placements or services. Reassess limits when you enter a new sector or accept larger contracts. Finally, consider how the agency could grow during the policy period. A limit suited to current placements … [Read more...] about Insurance for recruitment agencies: cover and limits