Standard and Non-Standard Contracts
Please note that all proposal and declaration forms under any of our Recruitment Insurance Partners products require you to provide a breakdown between temporary workers placed under your Standard Terms of Business and/or any Non Standard Contracts.
It is very important that you provide your insurers with accurate information regarding the types of contracts used when placing temporary workers, as failure to inform us of your business activities may cause issues with insurers in the event of a claim, and in some circumstances may lead to claims being rejected by your insurers.
To assist you with providing us with the correct information, this publishment will provide you with guidance on the contract types and why your insurers require a breakdown between the two types of contract placement.
The reason why insurers require wagerolls (payroll) and turnovers split between temporary workers placed under Standard and Non-Standard Contracts is simply to determine the possibility of liability claims arising under the insurance policy. Once your insurers have an understanding of the liability risk, they can then rate your insurance premium accurately.
Standard Terms of Business
You will have your own Standard Contract Terms, either provided by a legal adviser or templates provided to you by an association such as the Recruitment and Employment Confederation or Lawspeed.
These contracts will include a liability clause which clearly states that you do not accept any liability in respect of any injury or damage caused by the temporary workers, and that you will not accept any liability for any errors and omissions made by the temporary workers while they are working at the hirers premises.
This liability clause means that your insurers will be in a strong position to defend liability claims on your behalf should any attempt be made by anyone connected to the placement of temporary workers under this form of contract.
If you are asked to alter the liability clause in your Standard Contract Terms, then it will become a Non Standard Contract as far as your insurers are concerned, as the changes may alter their chances of successfully defending any claims.
Non Standard Contract Terms
This could either represent your own Standard Terms of Business where the hirer has insisted on changing the liability clause or a third party contract which you have been asked to sign in place of your own Standard Contract Terms.
It is very likely that a Non Standard Contract will include a liability clause that will require your insurers to provide liability cover in respect of any injury, damage or errors and omissions made or caused by the temporary worker you are providing.
The Professional Indemnity section can normally also be extended to include vicarious liability insurance for the temporary workers errors and omission if you are asked to sign contracts that require you to provide this cover.
We hope you have this useful, should you have any further questions please do pop in a call.