A subcontractor arrives on site, helps erect a scaffold beside a busy pavement, and a passing vehicle catches an outrigger. The question of who pays cannot be answered simply by saying, “the main contractor has insurance”. Policies, contracts and the true working arrangement all matter. So, are subcontractors covered by insurance? Sometimes, but never assume it.
For scaffolders, that distinction matters. A single incident can involve damaged property, an injured member of the public, hired equipment, a delayed programme and an argument over contractual responsibility. Cover sorted before work starts is far less painful than sorting out liability after the event.
Are subcontractors covered by insurance automatically?
No. A subcontractor is not automatically covered by the contractor who hired them, even where they are working solely on that contractor’s site. The contractor’s public liability policy may cover its own business activities and employees, but it will not necessarily extend to independent subcontractors or their work.
Some policies include cover for bona fide subcontractors, subject to conditions. Others only cover labour-only subcontractors, or cover the main contractor for their legal liability arising from the subcontractor’s work. That is different from insuring the subcontractor’s own business. The wording matters, as do any declarations made when the policy was arranged.
In practice, a principal contractor may require each subcontractor to hold their own public liability insurance, often with a specified limit such as £5 million or £10 million. Local authorities, site managers and clients may also ask for evidence before issuing permits or allowing work to begin.
Labour-only and bona fide subcontractors are not the same
Insurance providers commonly make a clear distinction between the two. A labour-only subcontractor generally works under the contractor’s direction, uses the contractor’s equipment and materials, and is paid for their labour. They may look more like a member of the contractor’s workforce.
A bona fide subcontractor usually runs their own business. They may quote for a job, provide their own tools, transport and labour, decide how work is carried out, and take responsibility for putting right defective work. A scaffolding firm brought in to erect, alter and strike a scaffold as a separate package is more likely to fall into this category.
Status is not decided by the label on an invoice alone. Insurers will consider the real arrangement. Getting this wrong can leave a claim disputed, particularly if a contractor has described all subcontractors as labour-only when they operate independently.
The cover a scaffolding subcontractor may need
The right insurance depends on the work, contract and business setup. But a subcontractor who works at height, moves materials, uses vehicles and supplies equipment should rarely rely on one policy alone.
Public liability insurance
Public liability is usually the starting point. It can respond if your work causes injury to a third party or damage to their property. For example, if a fitting falls and damages a parked car, or an incomplete scaffold is alleged to have contributed to an injury, this is the type of cover likely to be called upon.
Check that the policy describes your trade accurately. Generic construction cover may not reflect scaffolding work, pavement licences, roadside activity, work near the public or the heights involved. Some arrangements have height restrictions, so a policy that suits low-level maintenance work may not suit a complex access scaffold.
The limit also needs to meet the contract. A £2 million limit may be enough for some smaller private jobs, but many commercial sites insist on £5 million or more. Higher limits can be required for major projects, rail-adjacent work or busy public locations.
Employers’ liability insurance
If a subcontractor employs anyone, employers’ liability insurance is usually a legal requirement. It protects against claims from employees who are injured or become ill because of their work. In scaffolding, that may involve falls, manual handling injuries, vehicle movements or defective equipment.
Whether someone counts as an employee is not always straightforward. A person paid as self-employed may still be treated as an employee for insurance purposes if the business controls their work closely. This is one reason labour-only arrangements need careful attention. Do not assume that calling someone self-employed removes the obligation.
Plant, tools and hired equipment
A main contractor’s insurance may not cover your tools, tube and fitting stock, boards, harnesses, generators or small plant. Nor should you assume hired equipment is protected. Hire agreements often make the hirer responsible for loss or damage, even if the item is stolen from a secured compound.
Tools and equipment cover can help keep a job moving after theft or accidental damage. Own plant and hired-in plant cover can be just as relevant where a telehandler, hoist or specialist access equipment is involved. Check the security requirements, single-item limits and whether equipment is covered while left in or on a vehicle overnight.
Contract works and professional responsibilities
Where a subcontractor is responsible for materials or a defined portion of the project, contract works cover may be needed. It can protect work in progress following insured events such as fire, flood or theft, depending on the policy.
There can also be a gap where a client alleges that a scaffold design, inspection or alteration was negligent. Standard public liability policies may have exclusions or limitations around professional advice and design responsibility. If you take on design, temporary works coordination or sign-off beyond normal installation, say so before arranging cover. It is better to have an honest conversation at quotation stage than find a critical exclusion after a claim.
What the main contractor should check
Hiring a subcontractor does not remove a main contractor’s exposure. If the subcontractor’s work injures someone or damages property, the client may still pursue the contractor that controls the site or holds the contract. A claim can then become an expensive debate between insurers.
Before appointing a subcontractor, obtain current insurance evidence and check it is relevant to the job. The certificate is useful, but it is not the whole story. Confirm the public liability limit, the trade description, any height restriction, the expiry date and whether the subcontractor employs workers. If they are using hired plant or supplying materials, ask who is responsible for those items in the contract.
The subcontract should set out responsibility for workmanship, defects, site security, damage to existing structures, waste, permits and indemnities. Insurance should support the contract, not contradict it. A broad indemnity accepted without checking the policy can create a liability that the insurer will not meet.
For contractors using a mixture of direct staff, labour-only workers and bona fide subcontractors, keep records clear. Record who supplied tools and materials, who supervised the work, and who held responsibility for the finished section. This is sensible risk management and makes policy renewals more accurate.
Common gaps that catch people out
The most common problem is relying on a verbal assurance that “you’re covered”. Another is treating all subcontractors the same when their working arrangements differ. Both can unravel when insurers ask questions after an incident.
Other areas need care too:
- work above a stated height limit or outside the declared trade activity;
- damage to the part of the property being worked on, which may have restricted cover;
- defective workmanship claims, especially where there is no resulting damage;
- theft of tools from an unattended van or unsecured site;
- vehicles used for business without the right motor cover; and
- injury claims involving workers whose employment status was not properly understood.
These are not reasons to avoid subcontracting. They are reasons to make insurance part of the job planning process, alongside RAMS, permits, inspections and site access.
A practical way to arrange cover
Start with the actual work rather than a vague description of “construction”. Explain whether you erect and dismantle scaffolding, undertake temporary roof work, use pavement licences, work on commercial sites, employ operatives, hire plant or take on design responsibility. Mention the maximum working height and the largest contracts you expect to undertake.
Then read the contract before confirming you are insured for it. Pay particular attention to indemnity clauses, required liability limits, responsibility for hired equipment and any requirement to add another party to the policy. If the wording is unclear, ask for advice in writing.
A specialist broker such as Scaff Cover can help match the policy to how your business actually operates, including arrangements for unlimited-height-risk work where available. The aim is not to buy every possible add-on. It is to avoid paying for a policy that leaves out the risks you face every week.
If you are the subcontractor, carry your own suitable cover and keep your documents current. If you are appointing one, verify their cover before the first lift goes in. That small check protects the working relationship, the programme and the business you have worked hard to build.
