Defence Contractors frequently engage subcontractors or specialist consultants as part of larger projects.

Using subcontractors does not necessarily transfer all liability away from the primary contractor.

What insurance issues should be considered? #

Depending on the work, the primary contractor should consider:

• Whether subcontractors hold their own Professional Indemnity Insurance.
• Public and Product Liability Insurance.
• Workers Compensation requirements.
• Cyber Insurance.
• Contractual indemnities.
• Required insurance limits.
• Certificates of Currency.
• The primary contractor’s own liability for subcontracted work.

Can my insurance cover work performed by subcontractors? #

Some policies can respond to the insured business’s liability arising from work performed on its behalf by subcontractors.

This does not necessarily mean the subcontractor’s own liability is covered.

The policy wording and the nature of the work need to be reviewed.

What about Defence security requirements? #

Security requirements can also extend through the supply chain.

Where the work requires DISP membership or another Defence security standard, relevant subcontractors may also need to meet the applicable requirements.

These requirements are separate from insurance.

What should I provide to Webber Insurance? #

Tell us about:

• The percentage of work subcontracted.
• Types of services subcontracted.
• Whether subcontractors undertake professional work.
• Insurance required under the head contract.
• Whether subcontractors are required to maintain their own policies.

This helps ensure the insurance structure reflects the actual delivery model.