Labour-only subcontractors vs bona fide subcontractors
Plant security
For smaller tradesman policies, you will very often find a ‘theft of tools’ clause which will exclude cover for the theft of tools from vehicles overnight, unless contained within a locked compound. Certain insurers will allow you to extend your policy to include overnight theft of tools, which we strongly recommend. Your broker should advise you of any plant security conditions which are contained within your policy and will also be able to recommend any additional plant security measures you could use to improve risk management. At Scrutton Bland this is something we’d advise our clients on as standard practice, so if your broker hasn’t suggested it – maybe it’s time you talked to us?
The construction sector is experiencing a rapid rise in the theft of construction plant and tools. To limit their exposure, insurers are looking to apply certain plant security conditions, which are often contained within the policy wording. These will typically require plant to be contained within a locked compound or fenced perimeters when left unattended. In addition to this, insurers are further requesting trackers and/or immobilisers be fitted to items of plant which exceed certain values. We would strongly recommend you check your policy and verify you are able to comply with any plant or tools security conditions to make sure your plant is covered correctly.
If you use subcontractors, you are probably already aware of the different classifications of ‘labour only’ and ‘bona fide’. This is an important distinction when it comes to your insurance, as bona fide subcontractors will usually need to have their own insurance whereas labour-only subcontractors are regarded as employees for the purposes of Employers Liability cover. Please speak to your broker who should be able to explain the difference between the two, as it’s important these are correctly disclosed to insurers.
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