Insurance cover for Labour Hire Companies and Recruitment Agencies can consist of a variety of insurance policies, such as Public Liability, Professional Indemnity, Workers’ Compensation and Management Liability. Whether your Company is Labour Hire or Recruitment, Blue Collar or White Collar, your Insurance Programme should be tailored to ensure the coverage is suitable for your business.

Whether in relation to small business(es) or large corporate, a typical Labour Hire relationship between the Host Employer, the Labour Hire Company and the hired staff, will look like the below diagram:

A common misconception amongst the Labour Hire Industry is that all of the relevant insurance is the responsibility of the Host Employer. The Labour Hire Company’s insurance responsibilities typically relate to the On-Hire Employees and the Professional Service of providing an Employee that meets the qualifications and experience that the Host Employer requires.

In certain situations where a Labour Hire Company is providing the On-Hire Employees in accordance with a Host Employer’s contract, the Labour Hire Company may require their Insurance Policies to comply with certain contractual requirements. Not all products are able to accommodate these requirements, therefore it is imperative your policy is placed with the correct Insurer to prevent issues in the future.

It is the Labour Hire Company’s responsibility to maintain Workers’ Compensation Insurance for both the On-Hire Employees and the Internal Employees. Each State has varying requirements and guidelines for Workers’ Compensation for Labour Hire Companies and these requirements can be quite onerous or difficult to interpret. It is important that your Workers’ Compensation Policy is placed correctly to ensure no latent issues in the future.

In some cases, you may be contractually required to indemnify the Host Employer for any injuries that occur to an On-Hire Employee whilst under the instruction of the Host-Employer. This would require a non-standard coverage to be included under your Workers’ Compensation Policy. It is important that these requirements are met to ensure compliance with the Host Employer’s Contract.

Cover for Public Liability, Professional Indemnity & Management Liability for Labour Hire Companies is an important factor of managing the on-going risk of the business. In most cases, utilising a package product is the most efficient method of placing these policies.

The Labour Hire Specific Package Products are tailored to the needs of a Labour Hire Company and can be further customised as required to fit individual companies. Package Products have a number of advantages when compared to standalone policies, such as:

Public Liability Insurance

Professional Indemnity Insurance

Management Liability Insurance

Cyber Insurance

At KBI, we have assembled a team of experienced and specialised individuals who are fully equipped to assist your business and its insurance needs. Our team is well versed in navigating the hurdles furnished by the hardening insurance market and the specific difficulties this presents for the Labour Hire and Recruitment industries. Our unique approach combines the role of an insurance broker and consultant and emphasises the importance of educating our clientele, so they are able to make an informed decision.

Different insurers have specific appetites depending on the industry of the Host Employer and many are sensitive towards Labour Hire Companies that are expansive with the industries they supply labour to. We recommend working with an insurance broker such as KBI, to utilise our market knowledge and to ensure your business is presented to the appropriate insurers in a way that they understand your business and its risk in its entirety.