When engaging a subcontractor it is best practice to ensure that they have all the relevant insurances to reduce the risk of you being out-of-pocket for their actions. It’s all about risk, and how much risk you are prepared to take, especially when your best trades don’t have insurances, and you just need to get the job done!
WorkCover or Accident Insurance
Sole Trades are not required to have WorkCover, however if they don’t and they are injured on site, then the Builder (and/or Contractor who engaged the sole trader) may be financially responsible the costs to get the Worker back to work!
So we recommend that your request sole traders to takeout either WorkCover or Personal Accident Insurance.
All other Businesses and companies are required to have WorkCover, or “Self-Insurance”.
Self-Insurance is a type of “private WorkCover” that lager companies can take out.
Then you just need to ask for evidence (documents) to check the insurance has not expired.
Public Liability Insurance
Public Liability Insurance covers losses or damage to a third party (i.e. people other than employees or workers) as a result of your contractor’s actions.
We recommend that you ask your contractors to takeout Public Liability insurance, to reduce the risk of you having to carry the costs of any unfortunate incidents.
Professional Indemnity Insurance
Professional Indemnity insurance is generally only taken out by “Professionals” such as Engineers and Architects, to protect against legal costs and claims that which may arise out of an act, omission or breach of professional duty (e.g. inadequate design resulting in a failure).
Legal stuff: This web site provides general information only. For advice and information specific to your business contact a WHS consultant.