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even if a recruiter is confident that they don’t have contractual liability for the contractor’s work, they will often feel obliged to step in

Recruiters must implement procedures to ensure that contractors have the correct insurance cover in place to mitigate against reputational risk and gain competitive advance. That is the advice of the Association of Professional Staffing Companies (APSCo).

The recommendation is outlined in the trade association’s latest white paper: Contractor Insurance: The hidden risk in the recruitment supply chain – which has been produced in conjunction with Kingsbridge Contractor Insurance.

The report outlines how 55% of contractors who are contractually required to hold insurance do not have cover in place and offers advice around how consultancies can fulfil their duty of care to ensure contractors are well-informed.

Ann Swain, Chief Executive of APSCo, comments:

“There is a growing emphasis on supply chains across Government – and contractor insurance is part of that. By putting in place robust processes - such as implementing a barrier to placement and ensuring due diligence during a placement – recruiters can not only demonstrate compliance, but also ultimately protect themselves at a time when end clients are increasingly inserting clauses into terms specifying liability for the actions of contractors.”

“However, while contractor clauses are becoming more commonplace, the reality is that even if a recruiter is confident that they don’t have contractual liability for the contractor’s work, they will often feel obliged to step in and offer a rebate in order to protect their reputation and long-term relationship.”

“History teaches us that recruitment firms which adopt a more compliance-orientated approach are likely to be rewarded with commercial benefits that will protect their brand and improve long-term competitiveness.”

Thomas Wynne, Managing Director of Kingsbridge Contractor Insurance, comments:

“There have been a number of cases in the past where the risk carried by those involved in the supply chain is either misunderstood, underestimated or just ignored in the push to get a contractor through the door and into a placement. The short-term profit gain is at the expense of a huge, invisible and growing balance sheet liability.”

- Ends

Carly Smith
BlueSky PR
Carly@bluesky-pr.com
T: +44 (0)1582 790 708

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