Vicarious liability is when the employer is held liable for the negligence of another they have chosen to employ or hire. If your subcontractor causes 3rd party personal injury or property damage, you are covered for your portion of the blame.
Vicarious liability is considered strict liability and so even if you’re not at fault and was as careful as you could be, you and your contractor can still be held accountable to pay. But don’t stress, there are insurance options available to you that can make sure you’re covered.
How do I Protect Against Vicarious Liability Claims?
By now you would have realised how easily you can be held accountable for other people’s actions and may be wondering how you can be financially protected. There are several policies that can be put in place to help make sure your back’s covered when things go wrong.
Workers’ Compensation Insurance:
As you hopefully already know, workers compensation is actually a legal requirement in Australia. It can cover medical bills and lost wages if you or your employee are injured in the workplace.
Public Liability Insurance:
Any damage to property or personal injury to a third party, as well as any legal or defence costs are covered under public liability insurance. It is especially important as public liability claims are one of the most common for a tradie to make.
Professional Liability Insurance:
Lastly, professional liability insurance can cover you from the cost of any mistakes made by you and your mates while on the job. It can also cover the cost of lawsuits over any perceived mistakes made by you or your contractor.
As always, your insurance is up to you. For great insurance and peace of mind, give us a call.
Let’s talk! There are 3 easy ways to get a quote for public liability insurance:
- Call 1300 540 156 to speak to our dedicated tradie broker team
- Fill out our online Contact Our Experts form
- Go online and fill out the Quote form
You should consider if the insurance is suitable for you and read the Product Disclosure Statement (PDS), Financial Services Guide (FSG) and policy wording before making a decision to acquire insurance. Please ask us for more details before we provide you with our services. Our FSG is available on our website.
To the extent that any material in this document may be considered advice, it does not take into account your objectives, needs or financial situation, and is considered general in nature only. You should seek legal or other professional advice before acting or relying on any of the Content. All insurance policies contain exclusions of cover, and no claim is guaranteed. Refer to the Policy Documents.
It important to understand, there are limitations to all insurances and any claims are considered under the terms and conditions of the policy, including additional options you may select. Before, and upon acquiring any insurance, you should read all policy documents.