It can, but the position depends on the Professional Indemnity Insurance policy and how the subcontractor or consultant is engaged.

Vicarious liability and subcontractor cover #

A business can sometimes be held legally responsible for work performed by a subcontractor or consultant on its behalf.

Professional Indemnity policies may provide cover for this vicarious liability, subject to the policy wording.

You can read more about vicarious liability when engaging subcontractors.

Cover for the insured business’s liability arising from a subcontractor’s work does not automatically mean the subcontractor is an insured person under the policy.

The subcontractor may still need their own Professional Indemnity Insurance for their separate liability.

What can the insurer require? #

Depending on the policy and occupation, insurers may ask about:

• The type of work subcontracted
• Percentage of work subcontracted
• Whether subcontractors hold their own insurance
• Limits of their insurance
• How their work is supervised
• Whether written contracts are used
• The professional services they perform

Some policies may impose specific conditions or exclusions relating to subcontracted work.

Subcontractors and consultants should be disclosed when applying for or renewing cover where relevant to the insurer’s questions.

You can also read our broader guidance on engaging subcontractors.

Contact our team if you use subcontractors or consultants and would like help understanding how your Professional Indemnity policy treats their work.