Name: Business Insurance Specialists Pty Ltd
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Epsilon Labour Hire Insurance

1. Under the Liability section of coverage, who is the ‘Insured’, what is the Definition of Employee and does it include On-Hired workers?

You / Your / Insured means:

the Insured stated in the Schedule;
every past or present director, partner, officer or Employee of Yours, but only while acting within the scope of their duties in such capacity;
all Subsidiaries (now or hereafter constituted) of Yours, (including their directors, partners, officers, Employees or shareholders, but only while acting within the scope of their duties in such capacity) whose place of incorporation is within Australia or its external territories, and including any entity over which the subsidiary company is in a position to exercise effective direction or control;
Your personal representative, in the event of Your death, but only in respect of liability incurred by You;
any principal of the Insured, in respect of the vicarious liability of such principal arising out of Your acts or omissions, or the persons specified in paragraph (a) in the performance by them of work for that principal;
any shareholder of Yours, but only for liability in respect of which You would have been entitled to indemnity if the claim had been made against You;
any director, partner or senior executive of Yours in respect of private work undertaken by any Employee for such director or senior executive, and any such Employee whilst actually undertaking such private work; and
any office-bearer, committee or member of Your own canteen, sports, social and child care facilities or welfare organisations and any member of Your own fire, first aid, medical or ambulance services in respect of claims arising from their duties connected with the activities of any such facilities, organisations or services;

Employee means:

any person engaged in the Business under a contract of service or apprenticeship with You (other than with a principal of the Insured), but excluding any person employed under such contract who does not satisfy the definition of ‘worker’ under any workers’ compensation legislation; and
any person or incorporated contractor on-hired by You to a third party on a temporary contract basis; and
any person engaged by You (whether remunerated or not) for the purposes of receiving training or work experience.

Yes, the Definition of Employee includes On-Hired Workers

2. What am I insured against under the Liability section?

3. Under the Professional Indemnity section, what types of Labour Hire services can be covered?

Labour Hire and Recruitment Services means the following services of the Company:

placement of candidates in permanent positions, in its capacity as employment agent;
temporary placement of Employees and independent contractors with third parties for the provision of on-hired services or on-hired medical services;
the provision of the services for which on-hired Professional Workers have been supplied to third parties;
employment consulting services in the areas of occupational health and safety, human resources, human resources relations, human resources management, employment, outsourcing, and psychological testing as a service separate to a temporary and permanent placement;
training and induction in all areas, including group training; and
payroll management for Employees and independent contractors,

but does not include contracting by the Insured in its own right, or the provision of other services unless specifically noted in the Schedule.

4. Under the Professional Indemnity and Management Liability (Directors) section of coverage, who is the ‘Insured’ and does it include On-Hired Professional Workers?

5. Under the Professional Indemnity section of coverage, who is the Insured Person and what is the Definition of On-Hired ‘Professional Workers’?

Insured Person means any natural person who was prior to the Period of Insurance, or is during or after the Period of Insurance a Director, Officer or Employee of the Company.

Employee means any natural person who was prior to the Period of Insurance, or is during or after the Period of Insurance an employee of the Company, (which will include trainees, casual, part-time, seasonal, temporary, voluntary and work experience personnel) acting in such capacity, but excludes Directors and independent contractors.

Professional Worker means any person or incorporated contractor (sole practitioner only) who the Company on-hires to a third party on a temporary contract basis for roles where a tertiary degree (or equivalent including TAFE courses and training and experience of not less than five (5) years) is required in order to fulfil the requirements of the role.

For clarification, Professional Worker does not include any incorporated contractor (unless a sole practitioner), any secretarial staff, clerical staff, labourers, any blue collar workers or trades people of any description.

6. What does my Labour Hire Professional Indemnity Insuring Clause actually say?

7. Under the Professional Indemnity Section, what is a Labour Hire Services Wrongful Act?

Labour Hire and Recruitment Services Wrongful Act means an act, error, omission, conduct, misstatement, misleading statement, neglect, defamation, infringement of rights of intellectual property or breach of:

duty;
trust;
contract;
warranty of authority;
statute or confidentiality,

actually or allegedly committed by You in the conduct of the Labour Hire and Recruitment Services, but does not include an Employment Wrongful Act.

8. Under the Professional Indemnity Section, is my Labour Hire services business covered for the actions of my On-Hired Sub-Contractors and Consultants?

Yes

Sub-contractors and Consultants Insuring Clauses 1a and 1b are extended as follows:

Insuring Clauses 1a and 1b cover the acts, errors or omissions of sub-contractors and consultants, but only in respect of Your liability at law for Labour Hire and Recruitment Services Wrongful Acts in the conduct of the Labour Hire and Recruitment Services provided by the sub-contractor and/or consultant on Your behalf.

Cover will not extend to the sub-contractor and/or consultant who committed the act, error or omission for any Claim in connection with dishonesty.

9. What is the intention of, and what does the Host Employer Insuring Clause read as?

The intention is to protect a Host Employer for recovery actions either a Third Party Worker direct or from State or Territory Workers Compensation departments for financial loss arising from injury to Third Party workers.

The Host Employer Insuring Clause reads as:

We will indemnify You in respect of compensation which You shall become legally liable to pay for Personal Injury to a Third Party Worker, where indemnity is not available to You for the legal liability pursuant to any workers’ compensation policy, and where:

the Third Party Worker has sustained Personal Injury in the course of providing services as defined within the meaning of the workers’ compensation legislation in force in the State or Territory of Australia in which the Third Party Worker was working; and
there is a workers’ compensation policy in place; and
the Third Party Worker is entitled to make a workers’ compensation claim with respect to the Personal Injury; and
either a workers’ compensation authority has brought a recovery action against You pursuant to the relevant workers’ compensation legislation, or the Third Party Worker has claimed directly against You;