Labour Force Professional Liability Policy “the No 1 labour industry solution”

Labour hire  Has existed in the Australian commercial landscape for approximately 35 years – white and blue collar  Sustained exponential growth sees this industry segment turnover approaching $20 billion  Flexible and adaptive industry that reacts to market and industry needs  Compliments a variety of important roles for business – IR, HR, OH&S and recruitment “try before you buy”  Lifestyle choice for an increasing number of Australians who prefer to work casually for labour hire firms  Plays a role in the development of new enterprises by allowing the labour force to be tailored to the phase of the project

The scenario  As the labour hire industry has grown underwriters have learned of exposures to their liability programs  Industry growth saw increased reluctance to provide terms for GL cover  RCSA scheme developed by Park Lane Insurance Brokers, provided options for members  Park Lane went into liquidation, scheme subsequently taken over by ZIB, and underwritten by Liberty  Hard market saw further withdrawals by underwriters and imposition of preconditions to indemnity in RCSA scheme  After 5 years of difficult conditions there are still only 2 to 3 alternatives for cover - but still with limitations / conditions

Cover issues  Supply of “on-hired” labour simultaneously to many industry segments is a concern for liability insurers  We contend they are in the business of recruiting, placement and managing labour – not the business of their “host employer” clients  Heavily influenced by contractual requirements and statutory obligations  Employer has vicarious liability for employees working under the direction, supervision, control and environment of their clients – (Deutz Engineering V Skilled Engineering)  Exposures can exist quite simply in areas not readily covered in standard GL policy (e.g. motor vehicles, cargo etc)  Professional indemnity issues exist for the recruitment process itself as well as for the “quality” of work performed by the worker

The solution  A new “combined” liability policy specifically designed for and promoted to labour industry participants  The package automatically includes the following components  Broadform Public and Products liability – limits $10m or $20m  Professional Indemnity  Directors and Officers Liability  Fidelity ($250,000)  Representation Costs at Enquiries ($250,000)  Statutory Fines and Penalties ($250,000)  Option to include Employment Practices Liability as required

Key components  Public and Products Liability  Includes contractors as an insured entity  Does not have any professional exclusion relating to property damage or personal injury in relation to advice, which is not given for a fee  Includes some cover for registered vehicles being driven by “on-hired” workers  Includes liability for damage to goods being transported

Key components  Professional Indemnity  Includes single Director “Pty Ltd” contractors as the insured entity  Includes vicarious liability for “on hired” professionals  Moves the property damage and personal injury matters to the liability section, thus avoiding possible “gaps” in cover that can occur between insurers

Opportunity  Ability to market the leading liability package to new and existing labour industry clients  Removes uncertainty of the “pre-conditions” to indemnity that rival covers can have  Broadest cover available for labour industry participants  Wrapped cover with competitive packaged price  One insurer, no gaps and no arguments

The process  Brokers to their existing or targeted labour industry clients; labour hire firms, recruitment firms, group training organisations and contractors who supply labour  Enquire at the Lawsons Underwriting Australasia Ltd website or call / one of our underwriters  Send the completed Labour Force Professional Liability application form to Lawsons Underwriting  Lawsons Underwriting will conduct a prompt assessment of the information, liaise with you as necessary and provide a detailed Labour Force quote  Notification of acceptance of quote to Lawsons Underwriting will allow the cover to be confirmed and the risk bound  Underwritten by Vero Insurance Limited; i.e.100% Australian cover (not offshore)  Claims managed by Vero Insurance in Australia

Thank you Lawsons Underwriting Australasia Limited AFS Licence # –Kevin Corkery Mob –Crystal Chown Mob –Megan Sheehan Mob –Natalie Lings Mob