In general Bona Fide subcontractors work under their own direction. They should have their own insurance in place and provide their own tools/material rather than you providing them.
Bona Fide subcontractors do not need to be included in your premium calculation, however, most policies require that you check your Bona Fide subcontractors’ insurance details to ensure they are adequately insured. If you spot any issues please contact us and we are happy to assist.
In UK law a labour only subcontractor will be classed an employee of your business. Normally they won’t have their own tools or materials and they will be acting under your direction. The employees will be factored into your insurance premium and typically won’t have their own business insurance.
How do you tell the difference?
Here are a few examples but if you need any help please give Edison Ives a call.
|Task/Responsibility||Labour Only||Bona Fide|
|Own public liability insurance||No||Yes|
|Paid by Invoice||No||Yes|
|Hourly, weekly, monthly payments||Yes||No|
|Supply own tools||No||Yes|
|Fixed number of hours||Yes||No|
|Can reassign work||No||Yes|
|Fixed priced contract||No||Yes|
|Decide own hours||No||Yes|
|Hire additional labour||No||Yes|