INSURANCE FOR LABOUR HIRE AND RECRUITMENT COMPANIES

INSURANCE FOR LABOUR HIRE AND RECRUITMENT COMPANIES

AMC Insurance are a broker that can obtain insurance for Labour Hire and Recruitment companies. We are experienced in negotiating Public Liability & Professional Indemnity insurance (as well as additional covers), working closely with a specific team of insurers. In turn, we tailor policies to protect our clients’ from risk, whilst maintaining competitive rates.

We  are committed to guiding firms needing insurance for labour hire and recruitment through the process of obtaining cover by providing professional advice in easy-to-understand language.

WHAT DOES INSURANCE FOR LABOUR HIRE & RECRUITMENT COVER?

There are various types of products available to protect your business. Most initial inquiries on insurance for labour hire is in relation to Public Liability & Professional Indemnity insurance.

Public Liability covers the exposure for third party injury and third property damage from your business. The primary focus is to be covered for the risk exposure of your on-hired / temporary workers performing work on behalf of their Host Employer.

Professional Indemnity insurance covers for financial demands arising from a breach of professional duty or services performed by your on-hired / temporary workers. Therefore, the services are most likely tailored to more white collar professions like: Accountants, Real Estate Agents, Architects, Engineers, Managers, Nursing, etc. just to name a few.

The two above policies are not limited to providing cover for workers provided to a Host Employer. As a labour hire or recruitment firm cover will protect against claims arising from the day to day services that your own internal staff provide too.

HOW DOES THE COVER PROTECT MY LABOUR HIRE AND RECRUITMENT BUSINESS?

In short, Professional Indemnity (PI) and Public Liability (PL) is essentially a legal defence costs policy. It responds to many exposures, however, a few examples are:

• Written or verbal threats of legal action by a client from an actual or alledged negligence or failure in the services provided, or third party injury/property damage
• Demands for financial compensation from your clients or third parties
• Actual legal demands or Court proceedings against your business from services provided

Circumstances that could result in a claim need to be notified to your insurance broker. In turn, it is reported to the insurer. Mattters that do not eventuate into a claim should not impact renewal premiums offered by the insurer. However, failing to notify a matter can result in claims being declined in respect of the Professional Indemnity cover. This is due to the ‘claims made and notified’ structure of the policy  (speak with us for further information).

Formal claims require a lawyer or loss adjustor to be appointed by your insurer. Their initial role is to investigate and provide interim advice to your business. They report back to your insurer on the facts and provide guidance to them on policy coverage. Once indemnity is granted by the insurer if a lawyer is required they will represent your business in defending the allegations, or, reaching a settlement if appropriate.

To recap: the PI/PL insurance covers your business for legal defence costs. Also, payments for damages (or settlements if deemed appropriate by your insurer) along with any other extensions offered by the insurer.

HOW MUCH WILL PUBLIC LIABILITY AND PROFESSIONAL INDEMNITY COST MY BUSINESS?

The cost of any insurance policy is an important consideration for any business, not just labour hire and recruitment firms. Unfortunately, it is too difficult to provide an indicative cost; many factors are involved including:

• Level of professional fees, gross revenue, and/or wages
• Staff numbers
• Types of services provided (e.g. Labour Hire, Recruitment Services, Permanent Placement, Payroll, etc.) 
• Nature of on-hired workers services for Labour Hire
• Policy limits
• Prior claims

As a broker who focuses on labour hire and recruitment insurance we understand your time is important. We aim to streamline the process by only obtaining the relevant information to obtain quotes. We can always seek a non-binding indication on premiums from our insurers and email this through before considering whether to proceed further. 

WHAT INFORMATION IS NEEDED TO OBTAIN A PUBLIC LIABILITY AND PROFESSIONAL INDEMNITY INSURANCE QUOTE?

Our labour hire and recruitment proposal form is available for download on this page. Otherwise, you can contact us to have a copy emailed to you.

Brokers that specialise in labour hire and recruitment insurance quotes will require a proposal form, renewal declaration or addendum outlining your risk exposure. This applies to the previous year and a forecast for the next twelve months. We can use another broker/insurer form so long as it includes the relevant information to accurately assess your risk.

An overview of documents that can assist quoting are:

• Proposal Form / Addendum / Renewal Declaration
• Expiring Certificate of Currency (to match the insured entities, expiry dates, policy limits, retroactive date and who you are currently insured with as not to approach them in error)
• Claims History (only required if there have been previous notifications or claims reported)
• Terms of Business (for Labour Hire)

WHY DO I NEED A BROKER TO OBTAIN PUBLIC LIABILITY AND PROFESSIONAL INDEMNITY INSURANCE?

Public Liability and Professional Indemnity insurance for Labour Hire in particular generally requires an insurance broker or agent to act as an intermediary between your business and the insurance company. At AMC Insurance we only ever work as a broker. We always act on behalf of your business and not for the insurer.

Even if you access cover via an online portal you are not likely dealing direct with an insurer. Some online brokers provide an advantage for firms who require transactional coverage. However, insurance for labour hire and recruitment firms should be provided by an experienced broker.

WHAT ARE THE BENEFITS OF CHOOSING AMC INSURANCE AS A BROKER COMPARED TO OUR EXISTING PROVIDER?

AMC Insurance are a niche broker specialising in limited industry segments. Therefore, we can provide our clients tailored advice on their insurance needs. Our structure and experience allow us to respond efficiently with high quality service standards.

Existing clients will find we start review of their renewal programs approx. eight (8) weeks out from the renewal date. We aim to streamline this process where possible and only obtain the relevant information to negotiate offers from your insurer.

It is important to promptly return your renewal declarations to us where possible. We can then start negotiations quickly, which allows time to address any unexpected challenges that arise. We have select insurers we use for labour hire and recruitment companies needing Public Liability and Professional Indemnity quotes, however, alternative options will be sought if needed too. The process should be completed in one (1) or two (2) weeks depending on the complexity of your risk. That’s right – no more getting quotes days out from your expiry date!

For new and prospective clients with an existing policy or quote we are able to provide a policy comparison service to highlight primary differences in cover. Therefore, you’re able to make an informed decision on your insurance options.

Our client’s claims are handled with urgency by disclosing matters to your insurers immediately. Where appropriate for panel lawyers or loss adjustors to be appointed we will work to have them in contact with you promptly. They can then commence review and defence on any allegations received.

For Labour Hire and Recruitment clients we do also offer a non-legal review of non-standard Host Employer agreements that you may be requested to enter into. This helps to identify clauses which may conflict with your insurance program and can be used in conjunction with advice from your own lawyer to renegotiate more balanced conditions. 

Finally, our main point of difference as a niche broker means that once you have appointed us you are most likely to only deal with our Director, Alex Conlon. This provides many of our clients peace of mind: having a single consistent point of contact year on year. This means no more being cycled around from different team members, as can understandably be frustrating case in some other broking firms.

…ADDITIONAL INSURANCE COVERS FOR RECRUITMENT AND LABOUR HIRE CLIENTS INCLUDE:

Please contact us for assistance on the following:

• Corporate Travel
• Management Liability
• Office/Business Insurance
• Cyber Liability Insurance

TO OBTAIN PROFESSIONAL INDEMNITY AND PUBLIC LIABILITY QUOTE PLEASE COMPLETE AND RETURN THE BELOW FORM TO: ALEXC@ABTERRACE.COM.AU