One of the most common questions we get regarding public liability insurance is whether or not it covers a company’s employees and subcontractors.
The answer to this depends on what you mean by ‘covered’, and in this guide we will take closer look at how public liability insurance works when it comes to employees and subcontractors.
Before we get started, it is important to remember that this is not legal advice, and is simply general information about insurance. For more specific advice you’d need to speak with an insurance broker.
Are My Employees Covered?
Your employees will be covered in some cases, but not all. In defining what an employee is, we are generally looking at employees on wages or salary (not subcontractors), directors, shareholders and executives of the insured company.
– For Damage They Cause
Property damage or personal injury caused by your employees as a result of their work will be covered, provided that the person suffering the injury or damage is not another employee of the company.
– For Damage They Suffer
Employees are not covered by public liability insurance for any injury or damage they suffer themselves, regardless of who was at fault.
This type of risk would need to be covered by workers compensation or a personal income protection policy.
Are My Subcontractors Covered?
Contractors and subcontractors are considered to be any person or business that does work for you but is not on wages. Generally you would be invoiced by the person or business and they would have their own ABN.
– For Damage They Cause
The majority of public liability insurance policies will not cover your subcontractors for any property damage or personal injury that they cause.
There are some policies available which provide this level of protection, but generally they are far more expensive.
Generally it is better to ensure that all subcontractors have their own public liability cover in place.
– For Damage They Suffer
In some cases your subcontractors may be covered for an injury or property damage that they suffer, however this will only be the case if it can be proven that your company was at fault.
This is a more complex area of public liability insurance, and you should speak with your insurance broker about your specific situation to see how you would be covered.
Who Is Covered?
After all this you may be asking who exactly is covered by a public liability policy.
Basically it will cover your company and its employees for any property damage or personal injury caused to another person (such as a customer or member of the general public) as a result of your business activities.
Different types of businesses will have different needs when it comes to liability, so the best option is to speak with a specialist public liability insurance broker who can assess your needs and provide you with expert advice.
If you do not already have an insurance broker, please complete our contact form or quote form and we will attempt to refer to you a suitable insurance professional.