Definition of sub-contractor

**Gonzo** · 20 July 2007, 20:12

Originally posted by ruth11

Hi All

Sorry if this is a stupid newbie question, but I'm just trying to fill out the form on Randell Dorling insurance site for a PI, EL and PL quote (through PCG) and they ask about my company using sub-contractors. What's the definition of a sub-contractor? And Professional Indemnity Insurance - am I covering my company or myself?
I ask because I am in a position where I can send my husband to clients' site should they request to invoke any substitution clause in my contracts as he is as qualified as I am to do the job. It just happens that he is a permanent employee of another company. He is also my company secretary.
Does him working for my company instead of me make him a sub-contractor? Am I even making any sense?!

Thanks
Ruth

If he worked for your company would he be an employee of your company, or a separate entity doing a job for your company (i.e. a subcontractor)? I think that is the distinction that you need to work out.

**ruth11** · 21 July 2007, 11:17

Thanks Gonzo.
All understood now.

**TheFaQQer** · 23 July 2007, 15:19

One question to consider is if you don't have insurance to cover sub contractors, does a right of substitution clause hold any water? Or would you expect the sub-contractors insurance to cover them, and you don't need it?

**ruth11** · 23 July 2007, 18:36

Going on the definition supplied by Gonzo, I would expect any Sub-Contractor to have their own insurance - and since this came up I would now enforce it.
However, I found when I went through the policy application form and pressed submit, the question is reworded to the following:
"Do Sub-Contractors carry out any work on your behalf, other than via Rights of Substitution?"
And so my response of "No" was even more correct in that case.

If I were to send my Husband in my place, he would then become an employee of my company I guess? In which case, I will call Randell Dorling and let them know my number of Employees has just gone up to 2...

**Gonzo** · 23 July 2007, 19:22

Originally posted by ruth11

Going on the definition supplied by Gonzo

I should point out that I have virtually no experience of employment legislation

Originally posted by ruth11

I would expect any Sub-Contractor to have their own insurance - and since this came up I would now enforce it.
However, I found when I went through the policy application form and pressed submit, the question is reworded to the following:
"Do Sub-Contractors carry out any work on your behalf, other than via Rights of Substitution?"
And so my response of "No" was even more correct in that case.

If I were to send my Husband in my place, he would then become an employee of my company I guess? In which case, I will call Randell Dorling and let them know my number of Employees has just gone up to 2...

Reading through your scenario again, I don't think that your husband automatically becomes an employee of your company simply by fulfilling the substitution, but it would make sense to have some formal agreement in place to determine on what basis he is providing the services. And probably how he gets paid for them

Forgot the usual disclaimer before, IANAL etc. This advice is not worth any more than what you paid for it.

Definition of sub-contractor