Labour Force Professional Liability Policy

1
Labour Force Professional Liability Policy the
No 1 labour industry solution
2
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, OHS 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
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

4
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

5
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

6
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

7
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

8
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

9
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

10
Thank you

• Lawsons Underwriting Australasia Limited
• AFS Licence 329017
• Kevin Corkery Mob. [phone]
  kevin.corkery_at_lawsonsuwa.com.au
• Crystal Chown Mob. [phone]
  crystal.chown_at_lawsonsuwa.com.au
• Megan Sheehan Mob. [phone]
  megan.sheehan_at_lawsonsuwa.com.au
• Natalie Lings Mob. [phone]
  natalie.lings_at_lawsonsuwa.com.au
• www.lawsonsuwa.com.au