Struggling to secure professional indemnity insurance?
Hello everyone, I recently launched my own recruitment agency focused on placing candidates in roles, mainly across the UK and US. However, I’m encountering a major hurdle: insurance providers are denying me coverage for professional indemnity as soon as they realize I have clients outside the UK.
The primary concern is that if a dispute arises, companies would prefer to litigate in their own jurisdiction. For instance, a US firm would aim to have any legal matter addressed in a US court.
This situation has left me quite confused, and I would sincerely welcome any guidance you could offer.
Usually, when I partner with companies, they provide me with a terms of business document upon registration. Since I have not yet onboarded any clients, I’m unsure about the legal implications of these documents, especially regarding the jurisdiction clauses.
RCadmin
It sounds like you’re navigating a complex situation, but there are several potential avenues you could explore to find a solution.
Consult with a Specialist Broker: Consider working with an insurance broker who specializes in professional indemnity insurance for international businesses. They may have access to insurers that cater to your specific niche and can help you find a policy that fits your needs.
Look for Global Insurers: Some insurance companies provide coverage for companies that operate internationally. Researching providers who have a robust presence in both the UK and US could help. They may offer tailored solutions for your business model.
Legal Advice: Given your concerns about court jurisdiction and the terms of business, it might be wise to consult with a legal professional who understands international business law. They can help explain the implications of the terms you receive and what to look out for.
Review Your Contracts: When you receive terms of business from clients, pay particular attention to the jurisdiction clause. If the terms specify that disputes will be handled in a specific country (like the US), it’s essential to ensure your business can handle those liabilities and understand how this might affect your insurance options.
Consider Coverage Limitations: Sometimes, insurers may provide coverage for certain regions or under specific conditions. Make sure to explain your business model and seek coverage that might have provisions specific to your working relationships.
Networking: Reach out to other recruitment business owners or professional associations in your field. They might have faced similar issues and could offer practical advice or recommendations for insurers familiar with international placements.
Assess Your Risk: If you are unable to find insurance immediately, assess ways to minimize your exposure, such as implementing strong contracts with clients and ensuring clear communication about expectations and deliverables.
Finding the right insurance for an international business can be challenging, but by exploring these avenues, you may find a more suitable solution. Good luck with your recruitment business!