One of the most important distinctions scaffolding business owners need to understand is how insurance policies respond when it comes to contractors and labour hire workers. Many assume that once they have a Public Liability or Scaffolding Insurance policy in place, every person who works on their projects is automatically covered under that policy. In reality, this is not the case. Insurance is designed primarily to protect the policy holder, not every third party involved in the job.
If you hire subcontractors, bring in labour hire workers, or engage other scaffolding professionals to assist on projects, your policy will not automatically protect them against liability for their own actions. Your policy is there to cover your business when it is legally liable. If a subcontractor causes an accident, damages property, or injures someone, your insurer will carefully investigate whether that liability belongs to your business or to the subcontractor.
Insurance companies are clear about this. They will often require you to check and retain a copy of your subcontractors’ insurance certificates before allowing them onto a job. This step demonstrates that they have their own valid insurance in place. If they do not, and a claim arises from their work, the insurer may argue that you did not meet your duty of care by engaging uninsured workers. That could complicate your claim and leave you responsible for losses that should have been carried by the subcontractor.
In practice, if a subcontractor is responsible for an accident, your insurer may initially step in to manage the claim, but they will then look to push liability back onto the subcontractor’s insurer. This process, known as subrogation, helps reduce the cost of your claim and protects the insurer’s interests. If the subcontractor has no insurance, the burden may fall on your business, and the claim could impact your premiums for years to come.
For scaffolding contractors and companies, this highlights the importance of strong paperwork and contractor management systems. Always request a current Certificate of Currency from every subcontractor or labour hire provider you work with, and retain a copy for your records. This document shows that they hold active insurance with adequate limits. Some principal contractors also require that subcontractors name the head contractor as an “interested party” on their policy, further strengthening protection.
From a risk management perspective, it is also wise to ensure that subcontractors are properly licensed, trained, and compliant with WHS requirements. If a claim arises and it is found that you engaged unlicensed or uninsured workers, your insurer may take a stricter position on how much of the liability they are willing to accept.
Ultimately, your scaffolding insurance policy is there to protect you and your business. It is not a blanket cover for everyone you bring onto site. By managing subcontractors responsibly, checking certificates, and keeping accurate records, you reduce the chance of disputes with insurers and ensure that liability rests where it belongs.
