Subcontractors are completing work for your customers on your behalf so you can and will be held liable for that work.
A typical example people dont think applies is an electrician coming to your business property to do some work. If they damage or injure someone whilst there you could be held liable.
If someone is injured, or damage is caused to someones property by a subcontractor, you will most likely be the one who receives the demand for compensation. Your insurer will then seek to pass on the demand to the subcontractors insurer.
Obvioulsy, it is important to make sure your subcontractors have their own adequate insurance in place, if they do not, you and your insurer may find it very difficult to recover any claim made.
You can also be potentially held liable for injuries sustained by a subcontractor whilst they are working for you. If the subcontractor has their own workers compensation, workers comp will generally finalise the claim and then seek to recover this claim from your insurer if it is deemed you have contributed in some way to the injury. A worker to worker claim like this can take years to bubble up to the surface and can be quite expensive.
There is definitely risk engaging subcontractors, be aware of the risks and mitigate them as much as you can. Your insurance broker should be talking to you about this.
Reach out if concerened about your levels of insurance cover.
Call 1300 62 80 80 or contact us www.newcastleinsurancegroup.com.au
