Do subcontractors need Public Liability insurance?

According to the Australian Bureau of Statistics, there were more than 2.7 million actively trading businesses in Australia in 2025, with many relying on contractors and subcontractors to deliver services. As subcontracting continues to play a major role across industries, understanding who is responsible for insurance has never been more important.

What is a subcontractor?

A subcontractor is an independent business or individual hired by a principal contractor, builder, or another business to complete specific work under a contract.

Subcontractors are commonly used across construction, maintenance, landscaping, electrical, plumbing and other trade industries. They operate their own business, invoice for their work and are generally responsible for managing their own business risks.

Examples of subcontractors include:

• Electricians working under a building company
• Plumbers engaged on a residential development
• Tilers hired for a commercial fit-out
• Landscapers completing external works
• Painters contracted by a builder

Do subcontractors need their own Public Liability insurance?

It may be important for subcontractors to carry their own Public Liability insurance because they may be held responsible for property damage or personal injury caused by their business activities.

Public Liability insurance is designed to cover claims made by third parties who suffer personal injury or property damage as a result of negligent business activities.

Will my client’s Public Liability insurance cover me?

Not necessarily.

A common misunderstanding among subcontractors is assuming they are automatically covered under the insurance policy of the business hiring them. Whether cover exists may depend on factors such as:

• The policy wording
• Contractual arrangements
• The nature of the relationship
• Whether the subcontractor is included as an insured party

If you hire subcontractors, what should you do?

Businesses that engage subcontractors should understand how subcontractor arrangements affect their insurance responsibilities.

Request proof of insurance

Businesses may want to ask subcontractors to provide a Certificate of Currency before work begins. This helps confirm that insurance is active and current.

Understand contractual responsibilities

Contracts often specify which party is responsible for maintaining insurance. Understanding these requirements before work starts can reduce disputes later.

Declare subcontractor arrangements

If your business regularly uses subcontractors, your insurer may ask for information about those arrangements when you apply for or renew cover. Providing complete and accurate information helps ensure your insurer understands how your business operates.

Compare Public Liability insurance in minutes

Whether you’re a subcontractor working for one client or juggling multiple contracts, having the right insurance in place can help protect your business from unexpected claims.

Compare Public Liability insurance quotes from selected leading Australian insurers online. With BizCover, you can compare options side-by-side and purchase cover in minutes.