Business Insurance for Subcontractors*
Are you a sub-contractor looking for your own business insurance so that you can suitably covered?
Whether you work as a sub-contractor in the construction, communications, technology, administration or other industry you will need suitable insurance cover for your sub-contracting business activities.
As a contractor the minimum business insurance you will require is public liability. If you are a trade based subcontractor you may also require tools cover , marine transport, personal accident and commercial motor.
If you are sub-contractor in the marketing or i.t industries you may also require professional indemnity insurance.
What Insurance does a Sub Contractor Need?*
List of business insurance available for a subcontractor include:
- Public Liability: to cover you against damage to a third person or their property
- Tools: cover you for theft of your tools
- Stock/Marine Transit: if applicable to your business, this will cover you for loss or theft of stock
- Personal Accident: cover for you and your family if you hurt yourself
- Commercial Motor: cover for your vehicle which you use for work
- Professional Indemnity: generally cover for bona fide subcontractors that provide advice for a fee
The first three business insurances: public liability, tools, and stock may be able to bundled into a “business pack” for affordability and ease of managing.
Your enquiries will be handled quickly, efficiently and cost effectively.
Public Liability Insurance for Subcontractors*
As a sub-contractor, public liability insurance may cover you for damage you cause to a third partie’s person or property.
For example, if in the course of your trade works, you damage your clients’ furniture, destroy part of their home or building, cause some damage to a neighbouring property, or inflict personal harm on your client, visitors, neighbours or passers-by, public liability insurance may cover you. In the most serious cases, public liability insurance may cover you where your sub-contracting business activities result in the death of a person.
Public liability insurance may also be able to assist with paying damages and/or legal fees for any claims made against you as a result of your sub-contractor business activities. There are many instances of claims made against sub-contractors that are sole traders and small businesses operators who did not think they were at fault.
Below is the list of some of the bona fide subcontractors that can be covered under Public liability insurance:
- Landscape and Gardener
- Construction Workers
- Painters and Decorators
- Asbestos Removalist
- Tree Loppers
- Lawn Mowers
- Flooring Installers
- Installation and Maintenance Contractor
- General Liability Insurance
Why does a Subcontractor need Insurance*
It is strongly recommended that NO sub-contractor that is a sole trader or small business operator work without public liability.
As a sub-contractor, without public liability insurance you may personally be responsible for any damage you cause to a third parties’ person or property.
In the most serious cases, public liability damages can result in millions of dollars of payments; which would bankrupt most sub-contractor that are sole traders, and many sub-contracting based small business owners.
The most common sub-contractor based public liability cases involving million dollar payouts include serious personal injury to clients, visitors, neighbours or a passer- by and the destruction of property.
Even with basic public liability insurance claims against sub-contractors, legal bills start in the thousands of dollars, and climb into the tens and even hundreds of thousands of dollars.
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Do subcontractors need professional indemnity insurance?*
Below are the list of bona fide subcontractors that can need to be covered under professional indemnity insurance:
- Project Managers
- IT Contractors
- Engineering Contractors
- Graphic Designers
- Bookkeeping Contractors
- Web developers
- AV,Audio and Studio Engineers
If you are a sub-contractor and you can’t find your occupation listed above please call 1300 542 573 or contact us online as we may still be able to find suitable and affordable business insurance for you.
A further reason for sub-contractors needing public liability insurance is that in many instances you will NOT be allowed access to a site or permitted to do a job without showing your public liability certificate of currency.
Sub-contractor Insurance Cost*
At SMART we aim to treat each of our clients with a friendly and personal touch. Monthly payments are available.
We talk to sub-contractors all over Australia and provide business insurance quotes for them every working day.
How much public liability insurance will cost for your business depends on a number of key factors, including:
- The nature and scope of your business
- Your business turnover and size
- Amount of insurance cover your business needs
While it is important that the cost of your subcontractor insurance is affordable it is vital that you are covered for your complete sub-contracting business activities.
For an affordable quote on suitable insurance cover for your sub –contracting activities TALK to a SMART Business Insurance broker about the scope of your activities on 1300 542 573 or contact us online.