If you use Labour Only Sub-Contractors (LOSCs) please note that they count as employees for purposes of the Employers’ Liability (Compulsory Insurance) Act 1969 and you must therefore have Employers’ Liability insurance. The fine for not doing so is up to £1,000 per day.

If you employ Bona Fide Sub-Contractors (BFSCs) they do not count as employees but you must advise your insurer that you do use them. Also, you must check that their Public Liability insurance is current and adequate. We recently had a situation where our client employed a BFSC to carry out work in a kitchen. They made an error in connection plumbing pipes which resulted in a flood but their insurance only covered them for carpentry. Our clients’ insurers paid for the damage but our client now has an adverse claims history which may affect their future premiums.

Correct liability insurance can save your business from having to pay out significant sums in fines and/or settlements so please ask us for free advice and quotations. Telephone 01442 825481 or email info@diamondinsurance.net