Workers compensation, public liability, management liability and professional indemnity cover options for labour hire and workforce providers across Australia. Talk to a specialist broker.
Tell us a little about your business and we’ll be in touch to discuss your insurance requirements.
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As a labour hire provider, you generally remain the legal employer of the workers you place, even while a host business directs their day-to-day work. That split between employment and supervision creates its own risks, from a workplace injury on a site you don’t control to questions about whether your business, or the host, holds the required licence. Sol Insurance Brokers can help you explore cover options that reflect the way labour hire businesses actually operate.
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A statutory requirement in every Australian state and territory for businesses that employ workers, including labour hire providers placing staff with host businesses. Can help cover the cost of a workplace injury claim, subject to the relevant state legislation.
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Is designed to help protect you against claims for third-party injury or property damage arising from your business activities, subject to policy terms.
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Can help cover the costs of defending claims against your business arising from employment-related disputes, and certain regulatory investigations, such as those under a state labour hire licensing scheme, subject to policy terms.
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Is designed to help protect you against claims for financial loss arising from an error in your labour supply process, such as placing a worker without verifying they hold a required licence or qualification, subject to policy terms.
Depending on your business and circumstances, additional covers may include, but are not limited to, Business Interruption, Personal Accident & Illness and Cyber Insurance, where relevant and subject to policy terms, conditions and exclusions.
Placing a worker with a host business without first verifying the host holds a valid labour hire licence, where one is required
A placed worker is injured while working under a host business’s day-to-day direction and supervision
Operating without a required labour hire licence in a state that mandates one, such as Victoria, Queensland, South Australia or the ACT
A dispute over which party, the labour hire provider or the host, is responsible for a workplace incident
A regulatory investigation following a compliance breach under a state licensing scheme
An employment-related dispute involving placed or internal staff, such as an unfair dismissal or discrimination claim
Important: The information provided on this page is general in nature and does not take into account your individual circumstances. Insurance cover, terms, conditions and exclusions vary between insurers and policies. Your insurance requirements will depend on your business activities, contracts, assets and individual circumstances. Please refer to the relevant policy wording and documentation for full details of cover. The risks listed above are general examples only, for illustrative purposes, and do not confirm that your individual policy will respond to any particular claim.
Victoria, Queensland, South Australia and the ACT operate labour hire licensing schemes, and providing or using unlicensed labour hire in these states can carry significant penalties. New South Wales, Western Australia, the Northern Territory and Tasmania do not currently have a comprehensive scheme, though requirements are updated periodically. Check the current rules with the relevant state regulator before placing or accepting workers.
As the legal employer, a labour hire provider is generally responsible for workers compensation, even though the host business directs the work. Public liability and workers compensation can both be relevant, and responsibility can depend on the specific circumstances of the incident and the arrangement with the host.
Recruitment generally involves sourcing and placing candidates who are then employed by the client. Labour hire typically involves your business employing or engaging workers who are placed with, and supervised by, a host business, which brings different employment and workers compensation considerations. See our Recruitment Agency Insurance page if that better describes your business.
Even small labour hire providers employ staff and operate under state licensing obligations, which can give rise to employment disputes or regulatory investigations. Management liability can help cover the costs of defending these, and can be relevant regardless of business size.
Professional indemnity is designed to respond to claims for financial loss arising from an error in your labour supply process, such as inadequate verification of a worker’s licence or qualification, subject to policy terms. It does not replace your obligation to hold a required labour hire licence yourself.
Tell us a bit about your business and one of our brokers will be in touch.
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