This guide is for the individual: the freelance recruiter, the solo consultant running a perm desk from a laptop, the rec-to-rec contractor. If you run an agency – supplying temps, drivers or contractors at volume – the exposures multiply (vicarious liability, drivers' negligence, fidelity bonds, temps under employers' liability) and you want our recruitment agency insurance guide instead. For the solo consultant, the picture is simpler and cheaper.
What insurance does a recruitment consultant need?
Professional indemnity – the core. Solo-desk claims arise from placement errors (the candidate with misrepresented qualifications, the missed vetting step), breach of confidentiality (you trade in career-sensitive information from both sides), REC code and contract-term breaches, and GDPR mishandling of candidate data. Client terms of business commonly specify £1m PI; perm-only work without temp supply keeps you out of the vicarious-liability territory that makes agency insurance complicated – but check your contracts don't quietly import agency-grade requirements anyway.
Cyber cover. A recruiter's database is regulated personal data at volume – CVs, salaries, right-to-work documents. For a solo consultant, the realistic bad day is a compromised inbox and leaked candidate files; cyber cover fits the actual risk.
Also: public liability (client-site meetings), employers' liability the moment you take on a resourcer (legal requirement – and if you start engaging temps, stop: you're an agency now, with EL obligations for them; see the agency guide), business equipment, and legal expenses for fee disputes – chasing unpaid placement fees is this trade's most common legal entanglement.
How much does it cost?
Solo recruitment consulting prices like ordinary professional services: Suited offers recruitment PI from £7/month (£100k limit); Simply Business PI from £6.62/month; Superscript and Hiscox quote solo desks routinely. A consultant with £1m PI plus PL and cyber typically lands £150–£350/year – a fraction of agency-level premiums, which is precisely the reward for staying perm-only.
Comparison of providers
| Provider | Type | Notable features |
|---|---|---|
| Suited | Digital insurer | Explicit recruitment proposition from £7/month; the fast route for new desks |
| Superscript | Digital broker | Monthly flexibility as your desk scales; 4.5 Trustpilot |
| Hiscox | Direct insurer | Premium PI + cyber pairing; 4.4 Trustpilot |
| Simply Business | Comparison | Multi-insurer benchmark; quick client-terms certificates |
| Markel Direct | Direct insurer | PI from £5/month; legal helpline useful for fee disputes |
| Marsh Commercial / Insync (agency schemes) | Brokers | Where you're becoming an agency – the graduation route |
Reviews and expert ratings
Superscript 4.5/5; Hiscox 4.4; Simply Business 4.2; Markel 4.0. Which?/Fairer Finance: not rated.
Key takeaway
Match cover to your model: perm-only solo desks need £1m PI, cyber and little else – cheap and simple. The graduation triggers to watch: your first temp (EL obligations, vicarious liability), your first driver placement (drivers' negligence), your first fidelity-bond clause. Any of those appears in a contract, switch to the agency playbook before you sign.
Sources
- suited.insure/business-insurance/recruitment-agency-insurance (from £7/mo)
- simplybusiness.co.uk; gosuperscript.com; hiscox.co.uk; markeluk.com
- See the recruitment agency guide for temp/driver/bonding exposures