"self employed" persons & insurance
 

bit of an involved one this - but anyway:

does anyone know the letter of the law with regard to "self employed" people who turn up and provide their labour, with respect to public liability insurance? would they be covered under the Company's insurance, or would they be expected to have their own?

I'd ask your client. You can get coverage by the client if they notify their insurers, but normally they expect you to have your own.
I am not aware of any legal obligation but it should be specified in any contract you have with the client and may be written into std forms of contract for certain industries.
I have coverage through AXA for £5 mill but as its wrapped up with other specific insurance and cover for my house (I work from home) then I can't give you a price.

Nick

yup, you have to have your own mate.

even if your sub contracting, they dont have to cover you with their cover, unless previously agreed.

jamo

thanks, Butty. It's not actually for me - i want to know what our liability is for any vagabonds who come and work as "self employed". I have asked the broker but they have not responded as yet. i know there is an provision that any "bona fide subcontractors" must have at least £5M PL, but it doesn't say anything about "labour only" type subbies/self employed.

if i had my own way i'd just make everyone go paye.

They need to have their own insurance. In fact having PL insurance is one of the tick boxes for proving to the IR that you are self-employed & not just evading NIC. Remember that an employer has to deduct PAYE & NIC unless it can be shown that the self employed person really is self employed. If you are in the construction industry, then the 714 scheme is protection for you, if not, then you have to check the tickboxes. Part of your contract with the "subbies" will usually specify how much PL they need to have.

Nick - thanks for that. It's not technically construction, but the tax issue was concerning me as well, as a paye audit can be painful if they start going on about continuity of employment etc.

Remember that the rules about construction work are pretty painful. For instance, if I was to do cabling work for a customer in the construction industry, then I would have to have a 714 or they would need to deduct tax.

our industry is classified as "forestry" so we don't need our subbies to have CIS certificates. basically, what i have been trying to say to other people within the company as the "subbies" that are being used are not really subbies at all, but are merely toe rags evading income tax. now i know that they have to have insurance (which i suspected all along) i can happily tell this other person that unless he can get copies of the toe rags insurance certificates (which i know they don't have and probably can't afford) then he better tell them to get down the road. job done.

:)