host employer liability policy (help) “vertical worker to worker cover”
Post on 30-Dec-2015
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HOST EMPLOYER LIABILITY POLICY (HELP)
“vertical worker to worker cover”
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
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, however
Opportunity exists for common law claim against host either by worker or as a subrogated action by Workers Compensation Insurer/Authority
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, resulting in 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
Vertical “worker to worker” cover
The solution A new liability product specifically designed for and
promoted to the host employers Cover can also be initiated by your 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
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 $5,000 deductible / contribution to costs Policy issued in an occurrence format Premium calculated on wage base, industry and jurisdiction
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
Distribution Brokers to their “host employer” clients
Brokers to their “labour hire” clients in lieu of onerous contractual indemnities
Complete the HELP questionnaire / application and send to Lawsons Underwriting for quotation
Underwritten by WR Berkley Insurance Australia; i.e.100% Australian cover (not offshore)
Claims managed by WR Berkley Insurance Aust. in Australia
The process Identify host employer clients that have concerns with this exposure
or labour hire clients who give onerous indemnities Include host employer client in discussions about taking out this
cover Enquire at the Lawsons Underwriting website
www.lawsonsuwa.com.au or call / email one of our underwriters Complete and submit the HELP questionnaire / application in
conjunction with the host employer client Lawsons Underwriting will conduct a prompt assessment of the
information, liaise with you as necessary and provide a detailed HELP quote
Notification of acceptance of quote is provided to Lawsons Underwriting, then cover is confirmed and risk bound
Thank you• Lawsons Underwriting Australasia Limited • AFS Licence # 329017
– Kevin Corkery Mob. 0403 019 277 kevin.corkery@lawsonsuwa.com.au
– Crystal Chown Mob. 0417 541 906 crystal.chown@lawsonsuwa.com.au
– Megan Sheehan Mob. 0409 914 899 megan.sheehan@lawsonsuwa.com.au
– Natalie Lings Mob. 0408 220 250 natalie.lings@lawsonsuwa.com.au
• www.lawsonsuwa.com.au
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