Hi BootDog
I run an employment agency and we get our insurance through Brennans Insurances, whom I would strongly recommend you should use. I am at home today, but I will post the contact details when I am back in the office.
Forget insurance for the moment - as an employment agency supplying contract staff who are on our payroll, we have three potential problems:
Our recruitment consultants could act negligently e.g. they could supply an accountant who had been convicted of fraud to a client. The accountant defrauds the client. The client would certainly be able to make a claim against us. If we could have or should have known, or worse still, did know about the conviction, we might be held liable. We have PI insurance against such an occurrence. To the best of my knowledge there has been no claim against any agency for negligence in this field.
Our clients sometimes ask us to provide employers' liability insurance. We refuse on the grounds, that although we pay the employee, they are under the control of the client. Irish legislation and precedent specifically recognises the client as the employer. We have no legal liability in common law. Nor can the client "contract out" of the legislation which says that they are the employer.
We are also asked to provide Public Liability insurance. Say one of our contractors, while working for the client, beats up a customer of the client. Again we refuse, as we have no control over these circumstances.
We would not be able to get insurance which would cover the liabilities of the client as we don't have an "insurable interest".
You should of course get professional advice on your own particular situation. My PI insurance does not cover me for misleading advice given on AAM!
Brendan