1. Tailored insurance for the labour hire industry
Labour Force
Tailored insurance for the labour hire industry

2. Labour hire
Has existed in the Australian commercial landscape for approximately 40 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

3. Recruitment and Labour Hire Companies in Australia and New Zealand
Labour hire initially commenced as an off shoot of permanent recruitment companies
As skills became developed employees of the recruitment companies left and commenced their own business to fill opportunities in labour hire
Now some labour hire companies also provide permanent recruitment services, or in a lot of cases provide “temp to perm” services.
Labour hire companies enter the market either in a niche area/industry or profession, or provide labour to a broad cross section of industries
Labour hire companies with the appropriate skill levels also include the following services;
Payroll management services
Employment services via Government funded agencies
Training via a Registered Training Organisation or directly
Apprenticeship placement via a Group Training organisation
Specialised consulting in related areas e.g. employment consulting services

4. 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

5. 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. Best outcomes follow risk management of the employment related activities
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
Australian legislation makes it compulsory for every employer to have workers compensation insurance for their employees

6. The solution
A “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
Management Liability
Fidelity
Representation Costs at Enquiries
Statutory Fines and Penalties
Cyber Liability
Employment Practices Liability

7. Key components Broadform / 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
Provides waiver of subrogation to principals and where allowed, waiver of Proportionate Liability legislation
Includes an indemnity write back where a contract contains an indemnity or hold harmless by the Host Employer in favour of the insured

8. Key components (cont) 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
Where allowed, provides for waiver of proportionate liability provisions of legislation and waiver of subrogation.

9. Key components (cont) Management Liability
Covers Directors, management and the Company for liability for “wrongful acts”
Provides initial support for management of serious incidents/injuries
Provides cover for representation costs at enquiries for the entity and individual
Where permissible provides cover for certain fines and penalties for the entity and individual
Extends to cover Employment Practices liability
Extends to cover Cyber liability

10. 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
Specifically tailored for the industry
Wrapped cover with competitive packaged price
One insurer, no gaps

11. 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 Wellington Underwriting Agencies Pty Ltd website or call / one of our underwriters
Send the completed Labour Force application form to Wellington Underwriting
Wellington 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 Wellington Underwriting will allow the cover to be confirmed and the risk bound
Underwritten by Lloyd’s of London

12. Thank you Wellington Underwriting Agencies Pty Ltd
is a subsidiary of Cowden Limited, AFSL
Brian Atkin Mob:
Megan Sheehan Mob: