Tailored insurance for the labour hire industry Host Employer Liability Policy (HELP) “vertical worker to worker cover” Tailored insurance for the labour hire industry

Definitions Third Party Workers – Employees of an organisation whose services are carried out for another organisation not being their direct employer Host Employer – A business for whom work is carried out by an employee of another organisation Host Employer Liability – That liability which potentially rests with the host employer for injuries sustained by third party workers whilst carrying out work for the host employer

The scenario Third party worker at host employer operation becomes incapacitated as a result of an incident Claim by worker will be against direct employer under individual Workers Compensation legislation Opportunity exists for common law claim against host either by worker or as a subrogated action by Workers Compensation Insurer/Authority

The issues Host employers access their public liability cover to meet claims by third party workers Public liability insurers are paying these claims Public liability premium pool being polluted by these claims, Increased exposure to public liability insurers that has not been specifically reflected in the premium Insurers are increasing premiums, withdrawing cover or imposing high deductibles Host employers are seeking to transfer risk by using contractual indemnities – continued uncertainty

Vertical “worker to worker” cover

The solution A new liability product specifically designed for and promoted to the host employers Cover can also be initiated by the labour hire company as a proactive commercial undertaking on behalf of their host employer client Creates a new unpolluted liability pool, thus removing the impact on existing public liability insurance of host employers Ongoing risk management and OH&S processes which underpin the ongoing integrity of the product Risk management and treatment of third party workers reinforces and correctly reflects the current obligations at law

Extent of cover Single exposure liability policy arising from injury to third party workers Limit of liability $10,000,000 any one occurrence Includes $50,000 sub limit for legal costs of representation at OH&S “work safe” actions and/or appearances at coronial inquiries Policy wording endorsed to note specific relationship between host employer and labour hire company Standard $10,000 deductible / contribution to costs Policy issued in an occurrence format Premium calculated on wage base, industry and jurisdiction

Opportunity Ability to quarantine costs of injury claims from third party workers Remove uncertainty of liability exposure Remove need for contractual transfer of liability for third party worker injuries (cost and certainty benefit) Assumption of own responsibility provides more knowledge and better claims management Enhanced relationship with labour hirer/contractor allows improved interaction on injury management Flow on benefit from risk management of OH&S procedures for third party and direct employees

The process Identify host employer clients that have concerns with this exposure or labour hire clients who give onerous indemnities Enquire at the Wellington Underwriting Agencies Pty Ltd website www.wellingtonu.com.au or call / email one of our underwriters Forward the completed proposal form along with the workers compensation claims experience for the host employer and labour hire entity to Wellington Underwriting Wellington Underwriting will conduct a prompt assessment of the information, liaise with you as necessary and provide a detailed Host Employer Liability Policy quote Notification of acceptance of quote to Wellington Underwriting will allow the cover to be confirmed and the risk bound

Wellington Underwriting Agencies Pty Ltd Thank you Wellington Underwriting Agencies Pty Ltd AFSL 511660 Brian Atkin Mob: 0419 914 343 brian.atkin@wellingtonu.com.au Kevin Corkery Mob: 0403 019 277 kevin.corkery@wellingtonu.com.au Megan Sheehan Mob: 0409 914 899 megan.sheehan@wellingtonu.com.au www.wellingtonu.com.au