Labour Hire & Recruitment Insurance

Business owners are aware that regardless of what type of goods or services they provide, there are some facets of owning a business that can be quite trying. Staffing a company is an example of an extremely challenging task. Yet, without competent and industrious individuals, most companies cannot survive. However, it takes time and effort to recruit and screen potential job candidates.

Labour Hire & Recruitment Services

Additionally, staffing needs can change for many businesses. This is especially true for businesses that rely on seasonal help or small businesses who may occasionally find themselves needing a few extra employees for a specific project.

Those in the labour hire and recruitment industries need to be aware of any compulsory insurance cover in Australia, and be sure they have what is necessary.

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What is Labour Hire and Recruitment Insurance?

Cover for the labour hire and recruitment industry is similar to insurance across all business sectors. Employees of the labour hire company receive protection, and the companies the labour hire employees work with also have coverage through the insurance.

For general purposes, companies in the labour hire and recruitment niche will need these types of compulsory business insurance in Australia:

What is Labour Hire and Recruitment Insurance?
Type of Cover
Potential Benefits
Workers’ compensation insurance
Cover that will pay workers or their families in the event of on the job injury or death. The insurance is compulsory if you have employees.
Public liability insurance
Not every Australian business must have this insurance. However, the law requires public liability insurance for a large percentage of companies. Your policy covers you for third party death, injury, or other types of third-party loss.
Third-party personal injury insurance
The cover is compulsory if you own a motor vehicle. Frequently, it is a part of your vehicle registration fee.

Who Needs Labour Hire and Recruitment Insurance?

If your business exists primarily to link companies in need of employees with individuals with the skills to perform the necessary tasks, then you should consider labour hire and recruitment insurance. If you are in doubt, contact an insurance professional at Connect Business Insurance. You can get answers to your questions and learn the required cover for your company.

Who Pays for Labour Hire and Recruitment Cover?

The business directly employing the workers dispatched to a third-party company pays for the insurance cover.

Example: Dean runs a small restaurant and regularly employes seven people. He receives a contract to supply food for a large corporate event and needs more staff. Dean contacts Stacey, who operates a labour hire business, and she sends Dean 15 employees to help prepare and serve the event.

In this scenario, Stacey directly employs the 15 workers who will assist Dean. Because she is their employer, Stacey is responsible for maintaining proper insurance cover for her workers.

Does It Matter What Industry I Serve?

Labour hire insurance cover will apply to a wide range of industries. This includes but is not limited to:

  • Accounting
  • Administrative assistants
  • Banking
  • Building
  • Cleaning
  • Construction
  • Consulting
  • Education
  • Entertainment
  • Finance
  • Health care
  • Hospitality
  • Legal
  • Manufacturing
  • Mining
  • Transport

It may be in your best interest to look into types of cover that may fit the niche you serve.

Example: Your labour hire company specialises in white-collar professional services. In this case, it is likely to your advantage to consider Professional Indemnity Insurance. The policy will protect against a variety of issues pertinent to various businesses in this sector.

Another example of insurance coverage you may need for your labour hire and recruitment company is management liability insurance. This type of insurance protects any executives from personal and financial liability stemming from wrongful actions or inaction taken by them while acting in a corporate executive capacity. The liability cover focuses on a specific niche, and there is a chance it may not be necessary. Once again, consult your insurance professional who will let you know if this is a type of cover your company needs.

*Please Note*

The material provided here is for informational use only. It does not constitute legally binding advice regarding insurance products. Contact Connect Business Insurance to learn about the labour hire insurance options that best suit your circumstance.

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