Labour Hire Insurance is designed for businesses that employ people and place them with other organisations to carry out work. Although the employees may spend their working hours at a client's premises and follow instructions from the host business, the labour hire provider remains their legal employer. This means it may continue to have obligations relating to workers compensation, employment practices and other potential liabilities.
Cover is generally arranged through a combination of policies rather than one all-inclusive insurance product. Depending on the business, this could involve Workers Compensation, Public Liability, Professional Indemnity and Management Liability Insurance. Choosing suitable cover requires an understanding of the jobs employees perform, where they are placed, contractual conditions and which party is responsible for managing different workplace risks.
Mackay’s labour hire sector is closely connected to mining, Mining Equipment, Technology and Services (METS), engineering, manufacturing, construction, transport and agriculture. The Paget industrial precinct has expanded significantly in response to Bowen Basin mining activity and remains home to engineering, manufacturing and mining support businesses that depend on skilled and flexible workforces.
For labour hire providers, this can mean placing tradespeople, machine operators, technicians and support workers into workshops, industrial facilities and mine sites beyond Mackay itself. Travel to remote locations, heavy machinery, shift work, site inductions and changing host environments can create very different exposures from supplying administrative or hospitality workers within the city.
Queensland also has a mandatory labour hire licensing scheme. Providers operating in the state must hold a licence and comply with relevant workplace safety, workers compensation and employment obligations.
Labour Hire Insurance may be relevant for Perth businesses supplying workers into:
Mackay Regional Council has identified workforce attraction and skilled labour shortages as important issues for local manufacturing and mining-related industries, increasing the role recruitment and labour supply businesses can play in supporting employers.
The appropriate cover will depend on the occupations supplied, payroll, worker numbers, host sites, contractual requirements and claims history.
Labour hire businesses may require several forms of insurance rather than relying on one policy.
Key areas to consider include:
Depending on your operations, other specialist covers may also need to be considered. Policy limits, exclusions, excesses and conditions should be reviewed against your actual worker placements and contractual obligations.
Crucial Insurance and Risk Advisors is a multi-award-winning, AFS-licensed insurance brokerage with experience in labour hire and other specialised business risks. Crucial works with businesses ranging from smaller operators to larger organisations and assists clients with both traditional and harder-to-place insurance requirements.
We offer Mackay labour hire businesses:
Protect your labour hire business with insurance that reflects who you employ, where they work and the industries you service.
Contact us now!