Insurance- does it cover my mates?

[NSWinvester]

Hi,

I'm a do it yourself investor, my family and mates help me out a lot with the work and I've ever only hired a tradesmen less then a handful of times. My question is are these people covered under the public liability insurance?

I've read about 4 insurance policies and have only found one specifically relating to my question from Westpac general insurance stating that my employees (which may mean my mates/family) are not covered under the insurance policy.

Can anyone relate to me or know a insurance company that covers work preformed by my family and friends?

 

[Propertunity]

I suspect you need to get cover for household workers compensation. A number of insurers offer this coverage. Why not get an insurance broker to look into it for you?

 

[NataleaK]

Talk to a broker. Im assuming the "work" they're doing is reno/repairs. They probabaly wouldn't be classed as employees and will more likely be treated as contractors. A PL policy will usually cover contractors - but again - talk to a broker.

 

[marg4000]

Check with your State Government.

In Qld we have a domestic workers compensation policy, costs around $40-$50 for two years and covers us for anyone doing paid work around the home.

Other states should have something similar.
Marg

 

[Token Funder]

Public Liability cover doesn't "cover" anyone else but you. It's protection against the financial and legal costs of being held liable for damage/injury to other people or their property brought about by your negligence. In general terms, the liability cover that comes with your building insurance protects you for getting sued as a consequence of ownership of the property in question; the liability cover that comes with a contents policy gives you some protection whilst wandering around in your capacity as a private person.

Best way to understand the policy is like this:

*first of all read the definition of the insured (i.e. you). This is rear-end of the person/entity the policy will protect. No-one else.
*second, find the operative clause which will bang-on along the terms of "We will indemnify you against blah blah blah". This will probably tell you how much, where and for how long.
*finally read the exclusions; this simply tells you the sort of liabilities your policy won't protect "you" against. For example, most home policies won't respond if you get sued for damage you do while driving a car...you car insurance exists for that purpose. Similar situation for trains, planes and automobiles. Equally, they generally have an exclusion relating to "employees" (as defined in various ways) because injuries you might negligently inflict on an employee fall into the worker's compensation bucket. Also, they won't help you if comeones comes after you for professional advice on account of this is a Professional Indemnity matter. The list will be long but not hard to understand
*Lastly, remember this is liability cover. You need be liable. At fault. Negligent. It's not some sort of accidental injury cover for visitors who fall down drunk into the rose bushes.

 

[NataleaK]

Again - not likely to be considered employees.

 

[NSWinvester]

Insurance very confusing especially with the fine print. Work is almost finished I was just curious and my friends they won't sue me will they?

In future I'll give the Real and Westpac insurance a call and see what they say in regards to the policies I hold with them.

 

[The Y-man]

Insurance very confusing especially with the fine print. Work is almost finished I was just curious and my friends they won't sue me will they?

If they were tradies, they should have their own insurance.

If they are employees, you will be responsible for OHS, workcover, and other things that may include payroll tax, TFN registraiton etc etc....

The Y-man

 

[NataleaK]

*bangs head on desk*

 

[lizzie]

Again - not likely to be considered employees.

they seem to be mates doing a working bee ... right?

i had a scenario similar to this happen to one of my tenants. he was helping a mate fix the brakes on the mates car ... it was parked on the road ... crocodile pliers slipped and he lost an eye (uurgh) ... because the car was on the roadside, he wasn't covered under public liability so no payout. if the car had been parked in the driveway he would have gotten a rather large compensation payout.

check with your insurance about mates giving a hand re "maintenance" (insurance companies don't like people doing reno's) but i think you'll be right.

 

[Token Funder]

they seem to be mates doing a working bee ... right?

i had a scenario similar to this happen to one of my tenants. he was helping a mate fix the breaks on the mates car ... it was parked on the road ... crocodile pliers slipped and he lost an eye (uurgh) ... because the car was on the roadside, he wasn't covered under public liability so no payout. if the car had been parked in the driveway he would have gotten a rather large compensation payout.

check with your insurance about mates giving a hand re "maintenance" (insurance companies don't like people doing reno's) but i think you'll be right.

*watches waters being muddied again*

If tenant negligently poked out the eye of mate, mate can sue.
Mate can sue whether tenant has liability cover or not.
If liability cover, insurer wears cost on behalf of negligent tenant.
If no liablility cover, negligent tenant wears cost.
Mate may choose not to sue tenant in the absence of tenant's liability cover responding, as tenant's assets may amount only to flannellette shirt and signed Peter Brock poster.

Mate isn't "covered" by liability insurance - mate is hoping to sue someone who is.

There's a another angle around the bodily injury schemes associated with the car itself but that varies by state.

 

[lizzie]

ah - okay - don't take advice from me ...