Professional Indemnity Insurance may respond to certain claims alleging that a Labour Hire company’s professional services, advice, error or failure to act caused financial loss.

Examples can include allegations involving:

• Placing a worker who is alleged to be unsuitable
• Failure to complete agreed licence or qualification checks
• Failure to complete agreed reference or background checks
• Incorrect information about a candidate
• Failure to meet agreed recruitment requirements
• Errors in onboarding or administration
• Errors in contract management
• Recruitment or placement delays
• Confidentiality breaches
• Other recruitment or workforce-management services

Depending on the policy, cover can include:

• Legal defence costs
• Expert costs
• Insured compensation or damages
• Approved settlements

A claim does not need to ultimately succeed for defence costs to arise.

What should be disclosed? #

The insurer should understand the complete range of services provided, which can include:

• Labour Hire
• Permanent recruitment
• Payroll services
• Workforce consulting
• Screening
• Training
• Other workforce-management activities

Contracts that significantly increase the Labour Hire company’s responsibilities should also be reviewed before they are signed.

Professional Indemnity does not replace Workers Compensation, Public Liability or Management Liability Insurance.

Contact our team if you would like help reviewing your professional liability exposure.