Does my policy cover my sub-contractors
Insurance is designed to protect the insured against loss, with business insurance that protection needs to extend to wherever your business operates.
One part of business insurance is Public liability, this cover will protect your business against third party property damage or personal injury claims.
What if you business uses subbies? will your policy cover their activities on your behalf or injury to them?
When placing your insurance the insurer will ask do you use sub-contractors and if so how much of your turnover is generated by those sub-contractors. They will also want to know if they have their own insurance in place. Some insurers will offer coverage to your subbies but this may reflect in an increase premium or higher excess.
What if one of my sub-contractors get’s injured? Most policies will exclude injuries to your sub-contractors and employees, your should investigate your workers compensation requirements for each state and also consider a risk mitigation strategy to further protect your business.
A good risk mitigation strategy for your business would be to insure that they have their own public liability policy and also have their own income protection insurance. This way if your sub-contractor damages your clients property you insurer can claim against their insurer and with income protection in place it reduces the risk of a loss from an injury to them.
If the activities of your sub-contractor does result in a claim, you should still speak with your broker and insurer to keep them informed and to see where the likely liability will lie.
Still unsure, speak to a specialist, get them to review your potential risks and possible mitigation.
Steve is a licensed insurance broker and marketer. He is an internet insurance pioneer in Australia.
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