HOST EMPLOYER LIABILITY POLICY (HELP) “vertical worker to worker cover”

1. HOST EMPLOYER LIABILITY POLICY (HELP)“vertical worker to worker cover”

2. 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

3. 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

4. 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

5. Vertical “worker to worker” cover

6. 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

7. 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

8. 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

9. 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

10. 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

11. Thank you • Lawsons Underwriting Australasia Limited • AFS Licence # 329017 • Kevin CorkeryMob. 0403 019 277 kevin.corkery@lawsonsuwa.com.au • Crystal ChownMob. 0417 541 906 crystal.chown@lawsonsuwa.com.au • Megan SheehanMob. 0409 914 899 megan.sheehan@lawsonsuwa.com.au • Natalie LingsMob. 0408 220 250 natalie.lings@lawsonsuwa.com.au • www.lawsonsuwa.com.au