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

2. 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

3. 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

4. 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

5. Vertical “worker to worker” cover

6. 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

7. 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

8. 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

9. 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 or call / 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

10. Wellington Underwriting Agencies Pty Ltd
Thank you
Wellington Underwriting Agencies Pty Ltd
AFSL
Brian Atkin Mob:
Kevin Corkery Mob:
Megan Sheehan Mob: