Last Updated: May 30, 2024 by TRUiC Team


Headhunter Business Insurance

Getting insurance for your headhunter business is essential.

Headhunters need protection from alleged contractual breaches, personal injuries, data breaches, and other risks.

For example, a hacker could steal your clients’ personal data, or a company could claim that you didn’t provide adequate recruiting for them in the agreed-upon time period.

We’ll help you find the most personalized and affordable coverage for your unique business.

Compass needle pointing towards blue insurance logo
How to Start an LLC Tip Icon

Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.

Best Insurance for a Headhunter Business

General liability insurance is — generally speaking — one of the most important insurance policies for headhunter businesses. 

Some of the risks general liability insurance covers are:

  • Bodily injury
  • Property damage
  • Medical payments
  • Legal defense and judgment
  • Personal and advertising injury

Headhunters often take out several other types of insurance in addition to their general liability coverage, including:

  • Data breach insurance: If a hacker steals your clients’ online information, you could be sued. This will cover legal fees and any resulting judgments. 
  • Commercial property insurance: This covers all of the property your company uses, such as computers, printers, etc.
  • Commercial auto insurance: A commercial auto insurance policy is needed if you have a company vehicle, as any accidents you or your employees get into on the job won’t be covered by your standard auto insurance.

After you decide which policies you need, the next step is to decide what type of provider to use. Generally speaking, there are two types of companies that sell business insurance:

  • Traditional brick-and-mortar insurers — Firms such as Nationwide, The Hartford, and Hiscox.
  • Online insurers — Firms such as Tivly and Next.

Each of these has pros and cons. Traditional insurers are well established and have physical offices where agents sell policies in person, which many people like. However, their costs and prices are also higher. Because they sell insurance on their websites using AI, online insurers are cheaper and faster. 

Let’s Find the Coverage You Need

The best insurers design exactly the coverage you need at the most affordable price.

Cost of General Liability Insurance

On average, headhunter businesses in America spend between $400 – $700 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a headhunter business to other professional industries using the graph below.

Several factors will determine the price of your policy. These include your:

  • Location
  • Deductible
  • Number of employees
  • Per-occurrence limit
  • General aggregate limit

You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.

A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.

Graph showing average price of general liability insurance prices per industry
How to Start an LLC Tip Icon

Find the Best Rate

Discover the best coverage at the lowest rate in our affordable business insurance review.

Common Situations That General Liability Insurance May Cover for a Headhunter Business

How to Start an LLC Tip Icon

Example 1: When the pamphlets you print for a new marketing campaign include a copyrighted photo, the photo’s owner sues you for copyright infringement. General liability insurance would cover your legal fees and any court-awarded damages.

How to Start an LLC Tip Icon

Example 2: While visiting your office, potential client trips on the welcome mat and hits her head. General liability insurance would cover her medical expenses and, if she decides to sue, your legal fees and any required settlement. In extreme cases, in which the claimant passes away, this coverage would pay for funeral expenses as well.

How to Start an LLC Tip Icon

Example 3: During a visit to a client’s office, you accidentally back your car into the building and cause extensive damage. General liability insurance would cover the cost of repairing or replacing your client’s damaged property.

Other Types of Coverage Headhunter Businesses Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:

Professional Liability Insurance 

As a headhunter, your clients rely on your professional expertise to fill their open positions with qualified individuals. If a client decides you made a mistake and sues your business for negligence, professional liability insurance would cover your legal fees and any required settlement.

Commercial Property Insurance

You made a major investment in the equipment, supplies, and real estate necessary to run your headhunter business. In the event of a fire, theft, or natural disaster, commercial property insurance would cover the cost of repairing or replacing your business-related property. This includes structural damage to your building and the business materials stored there.

You can typically purchase commercial property insurance as part of a business owners policy (BOP). 

Commercial Auto Insurance

Any vehicle you use primarily for business requires commercial auto insurance to protect the vehicle, driver, and others on the road in the event of an accident. Be sure to select a policy that covers not only accident-related vehicle repair costs and medical treatment for anyone injured but also sufficient protection for any business property you carry in your vehicle. Also, consider purchasing coverage that exceeds your state-mandated limits.

You can purchase commercial auto insurance as a standalone policy or as part of a business owners policy (BOP), depending on the insurer.

Workers’ Compensation Insurance

Most states require businesses to carry workers’ compensation insurance for their part-time and full-time employees. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability or death benefits stemming from a workplace accident. 

You can typically purchase workers’ compensation insurance as a standalone policy.

Additional Steps To Protect Your Business

Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.

Here are several things you can do to better protect your headhunter business:

  • Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
  • Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
  • Stay up to date with business licensing.
  • Maintain your corporate veil.

Headhunter Business Insurance FAQ

Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.

A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.

Business insurance” is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.

Your headhunter business definitely needs business insurance before it gets started.

Even if there’s no legal obligation to purchase business insurance like commercial auto or workers’ compensation, your business needs insurance to stay financially healthy if it faces a legal judgment or other large financial obligation.

Not necessarily. Certain exceptions may be written directly into your headhunter business insurance policy, and some perils may be entirely uninsurable.

Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.

An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.