How much does recruiter insurance cost?

Recruiters pay an average of $29 per month, or $350 annually, for general liability insurance. This policy is sometimes called public liability insurance.

General liability insurance covers common third-party lawsuits related to bodily injuries and property damage. For example, a candidate might trip over a cable in your recruitment agency and break their wrist, or a staffing specialist could spill a drink on a client's laptop.

This policy also helps pay for legal fees if someone sues your business over an advertising injury, such as copyright infringement or defamation. For example, a recruiter could get sued for invasion of privacy for posting a photo of a candidate and their success story on LinkedIn without their permission.

Below is the average general liability policy for recruiters who buy from Insureon:

Insurance premium: $29 per month
Policy limits: $1 million per occurrence; $2 million aggregate

The per-occurrence limit is the maximum your insurance company will pay for a single covered incident, while the aggregate limit is the most the insurer will pay for all covered claims during the policy period, typically one year.

The cost of general liability insurance depends on factors such as the coverage limits and deductible you choose, whether you work from home or an office, your business income, and any additional insured endorsements.

Learn more about how your premium is calculated and how to save money on general liability coverage.

Recruitment agencies pay an average of $44 per month, or $530 per year, for a business owner’s policy. Small, low-risk hiring firms are often eligible for a BOP.

A business owner's policy bundles general liability coverage with commercial property insurance to cover both third-party risks and your business property. It typically costs less than purchasing each type of coverage separately.

A BOP protects against accidents that injure clients or damage their property. It also pays for repairs if your office or business personal property is damaged by a fire, storm, or vandalism. Because of its increased coverage and affordability, it’s the policy most often recommended by Insureon’s agents.

This is the average BOP for recruitment agencies that buy from Insureon:

Premium: $44 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500

Policyholders may see higher costs if they choose to add endorsements to their policy. For example, business interruption insurance would cover financial losses if damage caused by a fire or other covered property claim forces you to temporarily close your business.

The cost of a business owner's policy is based on several factors, including the value of your business property, where you are located, the number of employees you have, and your policy's exclusions.

For recruitment agencies, the average cost of workers’ compensation insurance is $38 per month, or $457 annually.

This policy covers medical expenses related to employee injuries, such as a receptionist who falls on a staircase at your agency and breaks their hip. It also provides disability benefits while an employee is disabled or temporarily unable to work.

Most workers' comp policies include employer's liability insurance to protect against lawsuits from injured workers, though they give up their right to sue once they accept benefits.

Recruitment agencies that have employees typically must purchase workers' comp to comply with state requirements and avoid penalties. For example, businesses in California, Pennsylvania, and New York must carry workers' comp if they have one or more employees. Florida businesses need coverage when they have four or more employees, and coverage is optional in Texas.

Since health insurance plans can deny claims for injuries related to your job, workers' comp coverage is also recommended for sole proprietors as a financial safety net and for peace of mind.

The cost of workers' comp depends on several factors, primarily the number of employees you have and their occupational risks. You can save money on workers' comp coverage by classifying your employees correctly and implementing a risk management plan to avoid work-related injuries and subsequent claims.

Recruiters pay an average of $82 per month for professional liability insurance, or $988 annually. This policy is sometimes referred to as errors and omissions insurance (E&O).

Professional liability insurance covers lawsuits related to professional negligence or failure to provide services that meet the standard of care for your industry.

For instance, if a recruiter fails to secure a job for a candidate after promising them a position, this type of coverage would pay for the resulting lawsuit, including attorney's fees and a settlement or judgment.

Below is the average professional liability policy for recruiters who buy from Insureon:

Premium: $82 per month
Policy limits: $1 million per occurrence; $1 million aggregate
Deductible: $1,000

Several factors influence the cost of professional liability insurance, including the size of your agency and your claims history. The type of recruiting services you provide, such as medical staffing or IT staffing, can also affect your premium. As with other types of insurance, you can save money on professional liability coverage by choosing lower limits or a higher deductible.

Reducing your risks also helps you avoid claims and keep your premium low. This includes clear communication with jobseekers and clients, and thorough documentation of all communications and agreements.

Businesses that offer professional services, including recruitment agencies and employment agencies, pay an average of $163 per month, or $1,954 per year, for commercial auto insurance.

This policy pays for legal fees, medical treatment, and repairs if your company vehicle injures someone or damages their property in an accident. It can also cover vehicle theft, vandalism, and weather damage.

Most states require commercial auto insurance for vehicles owned by a business. For personal, rented, and leased vehicles used for work purposes, look to hired and non-owned auto insurance (HNOA) instead.

The cost of commercial auto insurance depends on several factors, including your policy limits, additional insured endorsements and other coverage options, the value of your vehicles, and the driving records of anyone at your agency who is permitted to drive them.

Opting out of coverage you don't need, such as comprehensive auto insurance, is one of several ways to find cheaper car insurance.