From the boardroom at Peppers Resort in the beautiful Noosa Heads, a sobering conversation took place. At the annual SHAPE conference, RCSA Insurance took the floor to highlight a threat often overlooked by members.
“It’s a real issue that is lurking in plain sight, says Victoria Watts from RCSA Insurance.
“Many client contracts hide dangerous traps that could spell disaster for agencies if not handled with care.”
Victoria and the RCSA Insurance team (part of the global Marsh advisory group) are in our members’ corner, fighting to get onerous terms removed from client contracts to ensure they remain protected.
Victoria has a legal background and isn’t afraid to be the ‘bad cop’ when it comes to tidying up contractual agreements.
“It’s a harsh reality that many contracts are designed to pile the liability on recruiters, leaving them holding the bag, says Victoria.
“Recruiters need to be aware that by simply signing the dotted line, they could be unknowingly stepping on a legal minefield.”
When a recruiter is faced with a contract demanding impossible terms, Watts and her team jump into action by zeroing in on the most dangerous clauses and providing members with the means to push back against unreasonable terms.
“We try and turn it around in 24 to 48 hours.
“The stakes can be really high. A common scenario is when a temp is injured on a client site and years down the track, the client taps the recruiter on the shoulder to pay a six figure damages bill. It’s enough to ruin a business.
“Many recruiters have no idea they are playing with fire, so our boardroom session was a bit of a wakeup call. By signing a contract that moves your liability beyond your legal liability, you will not be covered by insurance. There is definitely a degree of grumpiness about the fact that clients are still trying this on.”
Working with RCSA Insurance gives members a range of benefits tailored to the unique needs of recruiters and staffing professionals.
By partnering with insurers who specialise in the recruitment industry, RCSA Insurance provides targeted support and expert advice on service agreements, tenders, and indemnity clauses, helping members navigate complex insurance requirements with ease. Members can benefit from reduced premiums for claims-free accounts, specialised recruiter policies, and multistate workers’ compensation programs.
“We also offer a no-cost review of existing insurance programs and jargon free guidance on insurance and risk management.
“At the end of the day we are here to help RCSA members in any way we can to make sure they are protected from all angles.”
In a world where one wrong contract could sink you, having RCSA Insurance in your corner is not just smart - it’s survival.
Members can connect with RCSA Insurance by emailing the team at [email protected].