Will my Public Liability Insurance cover my subcontractor?

A Public Liability Insurance policy will not extend to cover the subcontractor’s for their negligence and as such, they will be required to hold their own Public Liability Insurance policy.

What is a Subcontractor?

A Subcontractor can be a sole trader, partnership, or business that is engaged to perform part, or all of the works of another’s contract.

Examples of a Subcontractor

  • A builder has a contract with an individual to build their house. The builder decides that the painting works is best left to a qualified painter. The builder then engages a painter for the works and then pays them accordingly.
  • An accountant may subcontract out their administration works to an individual or company to free up their time

Are subcontractors considered employees?

With regards to Public Liability Insurance, a subcontractor is not considered as an employee of the business.

What is Public Liability Insurance?

Public Liability Insurance will protect your business from claims brought against you for negligence by third parties for personal injury, property damage, and advertising liability.

Do Subcontractor’s need their own Public Liability Insurance?

It is always recommended that Subcontractor’s hold their own Public Liability Insurance when they are working for themselves, or contracting to other companies. Public Liability Insurance policies will not extend to a subcontractors negligence.

What happens if a Subcontractor causes damage, or injures someone on my site?

Subcontractor’s will need their own Public Liability Insurance to ensure that if the unexpected occurred, such as someone getting injured, or damage occurring, that they are financially protected from the costs associated with a Public Liability Claim.

If I engage a subcontractor, and a claim is brought against me for their negligence, am I covered?

It is important to disclose to your insurer if you are using subcontractors as part of your business. Ensuring that your insurance company are aware of this, your policy can respond to the vicarious liability and costs associated with claims brought against you due to your subcontractors negligence.

What is Vicarious Liability Insurance?

Vicarious liability insurance is when the principal is legally responsible for the acts of their employees, contractors, and other workers whilst undertaking their job.

Does it cost more to note subcontractors on your insurance policy?

Your Public Liability Insurance policy premium is based off many factors. The amount that you pay to your subcontractors each year is a factor in rating the premium. Some insurers have thresholds on the percentage that you can use. Insurers can decline to offer you a quote if the amount you pay subcontractors is higher than their allowable limits.

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