host employer liability policy (help) “vertical worker to worker cover”

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 [email protected]

– Crystal Chown Mob. 0417 541 906 [email protected]

– Megan Sheehan Mob. 0409 914 899 [email protected]

– Natalie Lings Mob. 0408 220 250 [email protected]

• www.lawsonsuwa.com.au

host employer liability policy (help) “vertical worker to worker cover”

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