Using subcontractors does not necessarily remove a Mining and Resources Contractor’s exposure. The head contractor may remain responsible under the principal contract or may be drawn into a claim involving subcontracted work.

Checks before work begins #

• use a written subcontract that clearly describes the work and responsibilities
• check licences, qualifications and site approvals
• obtain evidence of Public Liability Insurance
• check Professional Indemnity Insurance where professional services are provided
• confirm plant, motor and other relevant cover
• consider workers compensation obligations in the relevant state or territory

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

Tell the insurer about subcontracting #

Insurers may ask about subcontractor payments, the types of work performed, supervision, contractual responsibility and any higher-risk activities. Disclose underground work, hazardous processes and other material activities even if they represent only a small percentage of the contract.

Keep current insurance evidence, subcontract agreements and site records. Review the principal contract and subcontract together so that obligations are allocated consistently.