Written by Michael Foote, Insurance Expert
Subcontractors Are Not the Same as Employees
You might bring in a subcontractor for larger jobs or during busy periods. While they are not full employees, the law still requires you to have certain protections in place when other people work under your direction.
Whether they’re paid by the day or hired for one project, you may still be responsible for their health and safety while on site.
Do You Need Employers’ Liability Insurance?
In many cases, yes. If you control where and how subcontractors work, provide materials, or supervise their job, then they may be classed as employees for insurance purposes.
By law, you must have employers’ liability insurance if you employ anyone other than yourself. Without it, you could face daily fines of up to £2,500.
Find out more about Employers’ Liability Insurance here
Check What Your Policy Says
Some tradesmen insurance policies automatically include cover for occasional subcontractors. Others require you to declare them in advance.
Before hiring anyone, check your policy wording or speak to your broker. You may need to update your cover to reflect new people working under your supervision.
What If a Subcontractor Causes Damage or Injury?
If a subcontractor injures someone or damages property while working under your direction, you could still be held liable. Public liability insurance can help protect you, but only if your policy accounts for subcontractor activity.
If they are fully independent and working without your supervision, they may need their own cover.
Protect Your Business Before You Expand
Bringing in extra help can grow your business, but it also brings extra responsibility. Make sure your insurance reflects the real structure of your team.
Visit our Tradesmen Insurance page to compare quotes and make sure you’re properly covered.