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 Vero Insurance Limited; i.e.100% Australian cover (not offshore)  Claims managed by Vero Insurance 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 or call / 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 # –Kevin Corkery Mob –Crystal Chown Mob –Megan Sheehan Mob –Natalie Lings Mob