In 99% of cases subcontractors will not be covered by the head contractors insurance, which could leave you exposed if something goes wrong.
What is Subcontractor Insurance?
As a subcontractor you work for yourself, which means you need to look out for yourself. Subcontractor Insurance can protect your business, your assets and your income in the event that something goes wrong.
Just as builders take out insurance for their own independent business, subcontractors also operate their own business and should therefor take out their own insurance policy. With separate policies to cover each party, what results is a comprehensive financial safety net to protect both the subcontractor and the business for which they are working.
Subcontractor Insurance can help your business survive the unexpected, with minimum losses.
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Our systems do the hard work, quickly matching the insurance that best suits your business.
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We find the right insurance for your needs and because we operate online we have lower costs to pass more savings on to you.
You can access and update your information at any time of the day and night, when it suits you most.
What are the Specific Risks Faced by Subcontractors?
During their day-to-day work, subcontractors face a significant number of risks that can affect their own business and wellbeing, as well as that of the head contractor, the general public and other 3rd parties.
Many subcontractors believe they are covered by the head contractor’s insurance however most of the time this is not the case. This leaves the subcontractor open to a number of risks, for example:
- A building company subcontracts a plumber. He digs a ditch in the backyard of a property but doesn’t mark it clearly. A neighbour trips and fall into the ditch, resulting in injuries which the plumber is held liable for. Subcontractor Insurance may cover legal defence fees and a compensation pay out.
- An electrician is subcontracted to rewire part of a house. As a result of faulty wiring, a small fire breaks out which causes minor property damage. A Subcontractor Insurance policy may cover the cost of the repairs that the electrician was responsible for.
- A self-employed roofer is seriously injured on the job and as a result he cannot work for 3 months. His business overheads don’t stop, but his income does. Subcontractor Insurance may help him by paying a monthly benefit.
- A mechanic has her garage broken into and all of her tools stolen. She is unable to work without them. The Tool insurance component of her Tradesman insurance package may cover the financial costs of replacing these business items.
As a subcontractor, it is possible to reduce your risk at work by evaluating the risks you are exposed to and taking steps to minimise them. However it’s important to back up your prevention strategies with a comprehensive insurance policy that can fully protect your business, your assets and the general public in the event that something goes wrong.
What Are the Key Elements of a Subcontractor Insurance Policy?
As a subcontractor there are various forms of insurance you may require, the most common being Public Liability. Depending on your circumstances however, a Subcontractor Insurance Pack may include the following covers:
General Property Insurance: Covering loss or damage (within Australia) to insured properties and assets as a result of an unexpected or unforeseen occurrence such as fire, theft, or flood.
Subcontractor Public Liability: Protecting you and your business against the financial risk of being found liable for a third party’s injury, loss or damage of property, or economic loss resulting from your negligence.
Tax Audit Insurance: Covering you for professional accounting fees that arise from an audit conducted by the Australian Taxation Office (ATO) or any other Australian (Federal, State or Territory) government agency.
Transit Insurance:Transit Insurance protects your belongings and business assets whilst they are being moved to a new premises.
Statutory Liability Insurance: Protecting your business from fines, penalties and legal fees that can result from an accidental breach of law, such as occupational health and safety laws, environmental laws and employment laws.
Tool Insurance: Tools of Trade Insurance works to protect the tools and equipment you use in your everyday trade. If your tools are stolen, damaged or become lost, your insurance policy will provide you with the money to repair or replace tools.
Business Vehicle Insurance: Business Vehicle Insurance can provide cover against theft and accidents of business vehicles.
Life Insurance: Protecting your family and loved ones from any expenses incurred as a result of your death or diagnosis of a terminal illness.
Income Protection: If you are unable to work as a result of injury or illness, income protection can provide cover in the form of a monthly benefit.
Who Needs Subcontractor Insurance?
Almost all subcontractors will need their own insurance policy. There are some exceptions where a company will have an insurance policy that extends to cover subcontractors but this is very uncommon.
In some cases, building and construction companies who hire subcontractors will have mandatory insurance requirements, and without a comprehensive policy, the subcontractor will not be allowed onto the worksite. Furthermore, some subcontractors will also require insurance in order to obtain their licence. Electrical and plumbing contractors in most Australian states will find that insurance is mandatory for their licenses.
Even if insurance is not a legal requirement to work onsite or obtain your licence, it is still highly recommended that all subcontractors have their own cover in place to protect themselves.
How PSC Direct Works for You
The specialist insurance brokers at PSC Direct have considerable experience in sourcing insurance for small to medium sized businesses across Australia. We pride ourselves in our ability to consider every business’s unique requirements and match the most appropriate insurance policy to cover the specific needs of our customers.
Having insured thousands of other small to medium businesses across Australia, we have a comprehensive database of insures and insurance products that we can access to source the right cover at the right place.
As part of PSC Insurance Group, one of Australia’s largest private insurance broking houses, PSC Direct has established relationships with a range of leading insurers and underwriters which gives us access to a range of premiums. Furthermore, as we operate online with reduced overheads, we are able to pass cost savings on to our customers.
We understand that insurance can be complicated, but we also know that protecting your business is important. That’s why we work for you to source the most specialised cover for your requirements; whether you operate a national trucking business, a state-wide construction company or own a boutique retail store.
We can provide expert advice specific to the sector you operate in. In addition to standard Public Liability Insurance and Professional Indemnity Insurance policies, we will assess further available polices to offer more specialised cover that will fully protect your business.
We are passionate about our clients and will be there for them into the future to update policies and covers as the business grows and develops. In the unfortunate event that you do have to make a claim, PSC Direct Insurance Brokers will be there for you every step of the way to ensure the best possible outcome for your business.