Vicarious Liability, Are you Covered? | Insurance Australia

Vicarious liability is a legal term meaning that a party can be held liable for the negligent actions of another party with whom they have a special relationship for example: in the context of insurance Employers and other parties such as Sub-Contractors.

So what if your Sub-Contractor caused personal injury or property damage to a third party arising out of the work undertaken on your behalf? Regardless of fault, you may need to defend an action brought against you.

Australia is probably the second-most litigious country in the world after the US so it is imperative to protect you and your company.

Vicarious Liability insurance will ensure your defence costs and the final judgement are insured.

In addition, you could also potentially be held liable for injuries sustained by the sub-contractor whilst they are performing work for and on behalf of your business. Even if the sub-contractor is covered under a workers compensation policy, the Workers Compensation Insurer may seek recovery if they deem the Insured to have contributed to the injury.

In the current market, due to large losses, Insurers are now either excluding Injury to Contractors or applying a high excess’s.

To find out more or if you would like your liability policy reviewed, please contact us today.