Using subcontractors does not automatically transfer all responsibility away from a Construction Contractor. Depending on the contract, the work and the circumstances of a claim, the head contractor may still be exposed to allegations arising from subcontracted work.

Insurance checks to consider #

Before work starts, consider checking that each subcontractor has insurance appropriate to their activities. This may include:

• Public Liability Insurance
• Professional Indemnity Insurance where design, advice or other professional services are provided
• Plant and equipment cover
• Workers compensation arrangements required in the relevant state or territory
• Any licences, registrations or qualifications required for the work

A Certificate of Currency is useful evidence that a policy existed on the date shown, but it does not confirm that every contractual obligation or activity is covered.

What should be disclosed? #

Insurers may ask about subcontractor payments, the types of work performed, responsibility for supervision and any higher-risk activities. These details should be disclosed accurately, including where only a small part of a project involves higher-risk work.

Written subcontract agreements can also help define responsibilities, insurance requirements and claims notification obligations. Keep current insurance evidence and agreements with the project records.