15 December 2014

Risk mitigation is key against 'hold harmless'

Court rulings on cases in relation to 'hold harmless' clauses seem to be plaguing recruiter contracts, sparking much discussion in the recruitment, on-hire and contracting sector.

hold harmlessThe situation highlights the importance for recruitment businesses to understand their contractual responsibilities. A thorough risk mitigation process can prove invaluable in protecting businesses from contractual indemnities.

Julie Mills, CEO of ITCRA, said “The risk is two pronged. The first is having people willing to negotiate fair and equal contract conditions – and the other is an insurance policy that will adequately protect the business and its service offering”.

Mills added that, “ITCRA’s contract templates, the Practice Improvement Papers from our Business Diagnostic audits combined with the support of our insurance partners, Gallagher, ensures members who capitalise on the services available have the best knowledge at hand to protect their business”.

Mills went on to say “Gallagher, (formerly OAMPS Insurance Brokers) as the association’s Platinum Partner and insurance adviser, has been proactive in this space. The service and knowledge they have provided on these matters have been recognised by the members – as indicated by the emails and phone calls received when the latest articles and court rulings were published.”

Kris Flowers, head of professional risks at Gallagher, said “Gallagher is committed to assisting ITCRA members as their trusted insurance broker and adviser with their risk and insurance solutions, and to ensure solutions are available to members to cover this exposure that continues to cause angst for contracting and recruitment companies.”

When you purchase insurance, it is important to look at more than just the premium price. Having insurance provides you with the security and peace of mind that you can financially survive in the case of an incident. Gallagher has been involved in this space for over 10 years and continues to work with insurers to improve policies and service to counter issues that arise, such as hold harmless clauses”. 

Gallagher has a long history of providing insurance solutions to the recruitment and contracting industry. They provide advice on risk identification, management and mitigation strategies, including the review of contracts to ensure associated risks are insured.

Gallagher will negotiate with insurers on clients’ behalf to ensure their insurance is tailored to cover their specific needs. Gallagher also has dedicated claims teams who support clients in the event of a claim.

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