If you are managing labour-only subcontractors as part of the project you will almost certainly need Employers’ Liability Insurance.
In some situations, where you have decided to manage your own project with or without the aid of a professional project manager, it is possible that you will be employing labour-only sub-contractors to undertake some of the work.
A tradesman or woman is usually defined as a labour-only sub-contractor (LOSC) if:
- they do not carry their own insurance
- they work on a day or hourly rate
- they do not provide materials
- they only use simple tools.
It is highly likely that the LOSC will be acting under your or your project manager’s direction and because of this, in the eyes of the law, a master-servant relationship has developed.
If you are managing labour-only subcontractors as part of the project you will almost certainly need Employers’ Liability Insurance.
Under these circumstances, insurance liability becomes a statutory requirement under the Employers’ Liability (compulsory) Insurance Act (1969).