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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
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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 www.lawsonsuwa.com.au or call / email 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 WR Berkley Insurance Australia; i.e.100% Australian cover (not offshore) • Claims managed by WR Berkley Insurance Australia in Australia
Thank you • Lawsons Underwriting Australasia Limited • AFS Licence # 329017 • Kevin CorkeryMob. 0403 019 277 kevin.corkery@lawsonsuwa.com.au • Crystal ChownMob. 0417 541 906 crystal.chown@lawsonsuwa.com.au • Megan SheehanMob. 0409 914 899 megan.sheehan@lawsonsuwa.com.au • Natalie LingsMob. 0408 220 250 natalie.lings@lawsonsuwa.com.au • www.lawsonsuwa.com.au