Are subcontractors covered in my Public Liability Policy?

Many hands make light work and often as tradies you need the support of a subcontractor, however, if there is an injury or property damage by that subcontractor is it likely to be covered under your public liability policy?

Painter

Tradies need to be aware where there is a possible risk to the business in the event that the subcontractor does damage while working for you, your insurer may cover any claims to a third party, however, most will exclude any injury to the subcontractor. They may also increase the excess on any claim, so he explains “It is important to understand and check the endorsements on your policy or if you are unsure get your Broker to check”

Here is an example of a public liability policy extension from a leading insurer looking at subcontractors.

 

91T Subcontractors Extension
The cover provided by the Public and Products Liability cover section of your policy is varied by the following endorsement: We will cover; Any subcontractor(s) but only for their liability for personal injury or property damage that is directly caused by their performance of the work for you and only to the extent that we would cover you under this cover section for your liability to that subcontractor(s) had it made a claim against you in respect of the circumstances giving rise to their liability; However this is on the basis that: (i) the work performed by the subcontractor(s) is part or all of the work that you have a contract to perform for some other party; and (ii) our liability shall not exceed the lesser of the minimum amount of liability insurance cover required by the contract to perform the work and the Limit of Liability shown in the schedule; and (iii) for avoidance of doubt, it is further provided that where a subcontractor(s) makes a claim under this clause, the Employer’s Liability Exclusion shall apply so that we will not pay for that subcontractor(s) liability for personal injury to any person in the service of either: (1) you; or (2) that subcontractor(s).

Steve Sloan (founder of Insuretradies) urges Tradies to ask their Insurer “What would happen if?”

  • Check Extensions or Exclusions relating to subcontractors
  • Check the excess on a claim when a subcontractor is involved
  • Check you subcontractor has their own Insurances in place
  • Check they also have workers compensation or income protection.
 

If you’re still unsure contact our team on 1 300 046 787

 Steve is a licensed insurance broker and marketer. He is an internet insurance pioneer in Australia.

Please note that any advice given has been provided without taking into account your objectives, financial situation or needs. It is also based on information we have obtained from you. You must ensure the information is accurate and complete. Otherwise, this advice may be based on inaccurate or incomplete information. You should consider whether the advice is appropriate in light of your objectives, financial situation, and needs