Working for yourself means you often work on contract for your clients. However in many cases you might be contracted by someone who is a contractor themselves. In this case you become a sub-contractor. You may be asking yourself if this means that you are automatically covered by their Public Liability Insurance or if you need your own. Well, we are here to clear things up for you!
But first, what’s Public Liability Insurance?
Public Liability Insurance will protect you from the costs associated with damages caused to a third party. This damage might be to third party property, or to third parties themselves in the form of injury or illness. The insurance steps in to help pay for items such as repair, replacement, medical bills, lawyer fees, or rehabilitation costs.
Am I a subcontractor?
If you’re a subcontractor then you have your own ABN number and you’re being hired out on an agreement by another contractor. This is usually to help out with a particular job. You’ll know if you’ve been hired by the contractor as an employee as you’ll likely be presented with an employee contractor rather than a subcontractor agreement. Subcontractors operate independently. You won’t have a direct agreement with the client if you are a subcontractor.
Do I need to get Public Liability Insurance?
As an independent operator you should consider Public Liability Insurance for your business in the first place. Depending on which type of industry you are in, it may also be mandatory to obtain it. A broad-form Public Liability policy will ensure that you are covered for the major third party liability risks such as if someone injures themselves on your premises or if you were to damage someone’s property.
Sometimes the contractor which engages you will have an extension on their own Public Liability Insurance policy to cover subcontractors. In this case for job specific cases you may not need to obtain the insurance yourself. But it is always best to check with the contractor hiring and also to check with your industry body and insurance broker that you are fully covered to industry standards before commencing work.
How much will it cost me?
The cost of your Public Liability Insurance will be determined by:
- The risks involved in your contractor work
- The size of your business
- If you have employees
- Your turn over
- The amount of maximum liability you’d like to purchase
What’s not covered?
Your Public Liability insurance will only cover you in cases of third party involvement. Therefore it will not cover yourself, employees, your property, or your vehicles. You’ll need to engage Personal Accident and Illness Insurance, Workers Compensation Insurance, and General Property Insurance to cover these areas.
Protect yourself as a subcontractor
Insurance for subcontractors should include Public Liability Insurance and is in many cases mandatory, check with your broker to make sure you are fully covered to industry standards. Call us on 1300 GET COVER today, email at info@contractorcover.com.au or fill in our easy online quoter. All information provided above is of a general nature, if you need specific advice we recommend speaking to a broker.
