If you work as a contractor or subcontractor it’s important to ensure that your business is protected against any potential liabilities or losses that can happen on the job. If the services you provide under contract result in a loss to a third party then you can be held liable for the damages, whether this be an injury to a third person or damage to property. So let’s talk about why this insurance is vital for your contractor business and what it covers.
What’s the difference between a contractor and subcontractor?
A contractor is an independent party which provides service to a client subject to terms of an agreement (a contract) between them. This contract will outline the duties of each party and scope of work as well as conditions, terms, liabilities and limitations. Being a contractor means you will have to obtain your own Public Liability Insurance policy as you operate independently.
Whilst a sub-contractor is also an independent party, they are engaged by the contractor named above to provide a service, but are not involved in the original contract with the client. Therefore, they will also need their own Public Liability Insurance in most cases.
Secure your business
The scope of the insurance policy will be determined by the risks involved in your particular role. For example an accounting contractor will have less on-site risks than a building contractor or a cleaning contractor. However both contractors will need a base-form of Public Liability Insurance to secure the basics first. Your contactors Public Liability Insurance will generally include broad liability insurance, injury claims protection to third parties, damage to property protection, and can include an extension to subcontractors.
What’s covered?
General losses covered by Public Liability Insurance for contractors can include:
- Injury or illness to third parties
- Damage or loss to third party property
Public Liability Insurance is a form of third party insurance, so it is important to note it will not cover yourself or employees, as well as your own property or vehicles. For this you will need to obtain other contractor insurance such as Personal Accident and Illness Insurance, Workers Compensation Insurance, and General Property Insurance.
Protect your contractor and subcontractor business
Insurance for contractors and 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.
