Do Labour only subcontractors need their own public liability insurance?

Labour-only subcontractors are like an extension of your team in that you are responsible for their work and they must be covered by your public and employers liability insurance.

Should subcontractors have their own insurance?

Nearly all construction sector contractors and subcontractors will be required to hold Public and Employers Liability Insurance. This is a common stipulation often found within your contractual terms. As such, some tradesmen opt to keep a valid policy in place to enable them to find and gain contracts efficiently.

Are Labour only subcontractors classed as employees?

Labour-only subcontractors are essentially employees who are taken on in order to act as additional labour.

Do I need employers liability insurance if my staff are self-employed?

This depends on the extent to which they work independently from you, or use your tools and materials. If they also work for other organisations, this can be a sign that they are wholly independent. If they are, you will not need employers' liability insurance.

Who is liable for subcontractors work?

Subcontractors undertake a contract from the contractor. Subcontractors undertake work that a contractor cannot do but for which the contractor is responsible.

Bona Fide vs. Labour-only subcontractor - know the difference

Are subcontractors covered by employers liability insurance?

Subcontractors who are 'labour-only' work under your direction and use your tools and materials. They are legally considered employees, and so they need to be covered by your employers' liability policy.

Are subcontractors responsible for their own health and safety?

In construction, subcontractors are used often and on most projects. You might think that each contractor is responsible for their own health and safety. And they are. But if you use subcontractors, you might also have some responsibility for their health and safety too.

Do subcontractors need public liability insurance?

Nearly all construction sector contractors and subcontractors will be required to hold Public and Employers Liability Insurance. This is a common stipulation often found within your contractual terms. As such, some tradesmen opt to keep a valid policy in place to enable them to find and gain contracts efficiently.

Who doesn't need employers liability insurance?

Self-employment

If you don't have any employees and work by yourself, you won't need employer's liability insurance. If you hire people to help, even on a temporary or seasonal basis, you'll need to take out insurance.

Do I need employers liability insurance if I am a sole trader?

If you're a sole trader and work by yourself or only employ close family members, there's no need to get employers' liability insurance, unless a contract requires it. There are other types of cover that you might like to think about as a sole trader, such as public liability and professional indemnity insurance.

What is a Labour only subcontractor?

Labour only subcontractor definition

A labour-only subcontractor normally just supplies their labour and works under the direction of their employer.

What is an example of a Labour only subcontractor?

A labour only subcontractor (LOSC) is usually hired to work on a project when extra help is required. For example, if you are a building contractor, and you don't think you'll be able to complete construction on a house in time, you may need to hire some extra staff on a short term basis.

Is a Labourer a subcontractor?

A labour-only subcontractor is purely the labour. Labour-only subcontractors work under your discretion and normally use your tools and materials. Bona-fide subcontractors, in comparison, work under their own instruction, using their own tools and materials.

What is insurance for subcontractors?

Subcontractor liability insurance is built to help out if someone suffers an injury or property damage because of your business – starting with public liability cover. You can add cover for your tools and equipment, plus personal accidents.

Do subcontractors need a health and safety policy?

In any relationship between a business - known as the client - and a contractor, both parties will have duties under health and safety law. Similarly, if the contractor uses subcontractors to carry out some or all of the work, all parties will have some health and safety responsibilities.

Does public liability insurance cover employees?

Public liability insurance does not cover employees, temporary staff, students or people on work placements – for this you need employers' liability insurance.

What level of public liability do I need?

The level of risk

What is the amount of exposure your business has to members of the public and the possible extent of compensation claims. Think about the type of work you do and the way your business interacts with people. You should also consider the costs involved in repairing any damage caused.

What is a bona fide subcontractor?

Bona-fide sub-contractors are generally deemed to be contractors who work without direction from the Insured, hold their own insurance and usually provide their own materials and tools.

How can I check if someone has public liability insurance?

The trades person should tell you that they are insured and be able to send you a link showing the renewal date and company insured with. Simple, ask your builder for a copy of his public liability certificate this will have the insurance or brokers details on .

Does everyone need public liability insurance?

Is Public Liability a legal requirement? Public Liability insurance is not a requirement by law, but many clients will insist that you're covered for public liability before allowing you to begin work. Some trade associations will not allow you to register with them unless you have a valid liability policy.

Can a sole trader have public liability insurance?

Yes. The need for public liability insurance is not determined by your turnover; it depends on whether you come into contact with the public. However, many insurance providers will consider your turnover when calculating your insurance premium.

Who is responsible for subcontractors negligence?

A general rule of contributory negligence is that a main contractor is not liable for the negligence of its independent subcontractor. There are some exceptions to this rule, including: The main contractor had actual knowledge that the sub-contractor's work had been done in a foreseeably dangerous way and condoned it.

Does CDM apply if only one contractor?

Only one contractor, the client duties must instead be carried out by the contractor as well as the duties they already have as contractor for the project. More than one contractor, the client duties must be carried out by the principal contractor as well as the duties they already have as principal contractor.

Who manages all the subcontractors?

The general contractor's project manager coordinates all of the subcontractors' work and serves as a liaison to the owner or architect on project activities.

How do I pay Labour only subcontractors?

Labour-Only Subcontractors

In this scenario, you would normally provide any tools and materials necessary for the work, instruct them where to work and what to do, provide them with health and safety training, pay them an hourly or daily wage and supervise them to ensure their work meets your standards.