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In the dynamic world of recruitment, staffing, and workforce services, the pivotal role of insurance cannot be overstated. As agencies evolve to meet the demands of the rapidly changing workforce environment, ensuring the right insurance coverage is in place becomes a critical aspect of their success.

If you’re a player in the recruitment and staffing space, you’re in the right place. This article will provide you with commercial-based advice, derived from years of close collaborations with various types of recruitment agencies, as well as strong insurer relationships. We recognise that getting the insurance equation right is far from straightforward. This article will serve as your guide and provide insights into the essential considerations. Read on!

Navigating Tenders: Avoiding Common Pitfalls

The journey of responding to tender requests can be an exciting prospect, often presenting new opportunities for growth and expansion. However, amidst the excitement, agencies must tread carefully to avoid common pitfalls that could potentially risk their operations. In the world of insurance, overlooking crucial details and hastily agreeing to onerous contractual terms can lead to unexpected challenges.

Here are some of the prevalent pitfalls agencies often encounter and how proactive measures can mitigate these risks:

1. Excitement overshadowing due diligence

  • Pitfall – Rushing to embrace and sign a new tender request opportunity without properly reviewing the associated contractual details. Leading to not being appropriately nor adequately covered.

2. Overlooking indemnity clause implications

  • Pitfall – Agreeing to indemnity clauses that extend far beyond the scope of your existing insurance coverage.

3. Insufficient due diligence

  • Pitfall – Failing to conduct thorough due diligence on tender requirements and obligations can potentially result in significant uninsured claims, contract breaches, and client dissatisfaction.


Before committing to a new contract, engage your insurance broker and leverage industry experience to ensure your coverage aligns with the tender requirements. Our team can assist in reviewing the key insurance, indemnity, and liability clauses to avoid surprises post-signing.

Not all insurance brokers perform such a thorough analysis beyond confirming the presence of professional indemnity and public liability insurance and the limits of cover.

Our team at PNO delves deeper, reviewing the intricacies of tender contracts to identify potential insurance gaps and recommending amendments.

With the support of an experienced insurance broker and a commitment to due diligence, agencies can confidently pursue opportunities without falling to those common pitfalls.

For more information on this topic, contact Mark Laudrum on 0428 761 352 or, to discuss further. Our team has years of collective experience, particularly in the insurance space tailored for recruitment, staffing and workforce agencies, and we’d be more than happy to assist!

Read Part 2: Mastering Workers Compensation here.