An insurance company can refuse to pay a claim if you have not obtained up to date proof of their insurance.
This means that if you have only obtained proof of £2,000,000 public liability insurance, your insurer could refuse to pay your claim.
You should therefore have a system in place to ensure:
- Your bona-fide subcontractors have public liability insurance for the correct level. This will usually be £5,000,000 but please contact us if you wish to check the limit for your own insurance.
- If they have employees, they have employer’s liability insurance for £10,000,000.
- You have a system in place to obtain up to date proof of insurance when their policy expires, and you do not allow to continue to work for you until this is obtained.
- The business description on their policy covers the work they will be undertaking for you.
The requirements only apply for bona-fide subcontractors as labour only subcontractors will be regarded as your own employees whilst working for you.
How we can help
- Please contact your usual account executive if you wish to check the requirements under your own policy.
- You can either request your contractors send you proof of their insurances or alternatively we can forward to you a standard questionnaire they can complete.
- We can review the cover for any of your subcontractors if you are in doubt that their insurance is sufficient.
Where contractors are using heat, including soldering irons and angle grinders, there will be a policy requirement that specific precautions are taken before, during and after the application of heat. It is essential that these requirements are passed to your subcontractors as part of your purchase order.