---
created: 2026-03-12
source: Rivet
tags: [agent-archive, rivet]
---

# Insurance Decision Package — Launch Requirement
*Research & recommendation for Michael's approval*

## Summary
**Harper flagged Professional Indemnity + Public Liability insurance as launch requirement. Cost: $1,200-3,000/year. Recommendation: Purchase before launch.**

## Risk Assessment
**What we're exposed to WITHOUT insurance:**
1. **Professional negligence claims** — Bad worker placement causes property damage or injury
2. **Platform liability** — Technical fault leads to failed match, contractor loses money  
3. **Public liability** — Worker injury on job, contractor sues us as platform provider
4. **Employment practices** — Discrimination/unfair placement claims
5. **Data breach liability** — Personal info leak leads to damages

**Construction amplifies all risks** — higher injury rates, larger claim values, more litigation.

## Insurance Requirements Research

### Professional Indemnity (PI) Insurance
**Covers:** Errors, omissions, negligent advice in professional services
**For RateRight:** Bad matches, platform failures, incorrect worker qualifications
**Industry standard:** $1M-$5M coverage

### Public Liability (PL) Insurance  
**Covers:** Third-party injury/property damage claims
**For RateRight:** Worker accidents on contractor premises, platform-related incidents
**Legal requirement:** Many contractor clients require $5M+ PL from suppliers

### Cost Analysis (Based on Market Research)

| Coverage Type | Annual Cost | Coverage Limit | Suitable For |
|---------------|-------------|----------------|--------------|
| **Basic Package** | $1,200-1,500 | PI: $1M, PL: $5M | White-collar labour hire |
| **Construction Package** | $2,000-3,000 | PI: $2M, PL: $10M | Blue-collar/construction |
| **Premium Package** | $3,500-5,000 | PI: $5M, PL: $20M | High-risk operations |

**Our situation:** Construction-focused platform = higher risk category = $2,000-3,000 range

## Recommended Action Plan

### Option 1: Construction Package (RECOMMENDED)
- **Coverage:** PI $2M, PL $10M  
- **Cost:** ~$2,500/year ($208/month)
- **Provider:** Coverscope (construction specialist) or CBI
- **Timeline:** 5-10 business days

### Option 2: Basic Package (Minimum Viable)
- **Coverage:** PI $1M, PL $5M
- **Cost:** ~$1,500/year ($125/month)  
- **Provider:** BizCover (online quotes)
- **Timeline:** 2-5 business days

### Option 3: Premium Package (Over-insured)
- **Coverage:** PI $5M, PL $20M
- **Cost:** ~$4,500/year ($375/month)
- **Justification:** Overkill for startup phase

## Financial Impact
**Construction Package at $2,500/year:**
- Monthly cost: $208 (fits within $700/month burn target)
- **Payback:** 50 hires per year ($2,500 ÷ $50 fee)
- **Risk/reward:** $2,500 cost vs potentially unlimited liability exposure

## Implementation Steps
1. **Decision:** Michael approves coverage level
2. **Application:** Online quote + application (2-3 hours)
3. **Underwriting:** 5-10 business days review
4. **Payment:** Annual premium upfront
5. **Certificate:** PDF certificate for client/legal requirements

## Recommended Providers

### Coverscope (Construction Specialist)
- **Focus:** Labour hire + construction insurance
- **Advantage:** Industry expertise, tailored policies  
- **Quote:** Online form + phone consultation
- **Website:** coverscope.com.au/labour-hire-insurance

### CBI (Commercial Broker)
- **Focus:** Business insurance specialists
- **Advantage:** Multiple insurer access, competitive rates
- **Quote:** Direct contact required
- **Website:** cbi.au/labour-hire-insurance

### BizCover (Fast Online Quotes)
- **Focus:** Small business insurance platform
- **Advantage:** 24-hour quotes, simple process
- **Quote:** Instant online calculation
- **Website:** bizcover.com.au

## Legal Context
**Why this matters for RateRight:**
- Many contractors require suppliers to have $5M+ PL insurance
- Professional negligence claims in construction can exceed $100K easily
- Platform liability is emerging legal risk — no established precedents
- Insurance certificates often required for enterprise client onboarding

## RECOMMENDATION

**Purchase Construction Package ($2,500/year) through Coverscope immediately.**

**Rationale:**
1. **Launch blocker removal** — allows confident go-live
2. **Client credibility** — insurance certificates open enterprise doors  
3. **Risk proportionality** — $2,500 cost vs unlimited liability exposure
4. **Industry appropriateness** — construction-focused coverage for construction platform

**Timeline:** Apply today, launch protected in 5-10 days.

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**DECISION NEEDED:** Approve coverage level + provider, authorize immediate application.
*Insurance certificates required before client outreach begins.*