Professional Indemnity Insurance

Discussion in 'Legal Issues' started by alexm, 10th Apr, 2019.

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  1. alexm

    alexm Well-Known Member

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    Hi all,

    Looking to setup a contracting company that will be employing sub-contractors.

    Can anyone recommend a reputable insurance provider/broker who I can chat to about this and workers compensation insurance as well?

    Thanks
    Al
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    I use a broker - ii-A.com.au

    Peter McDermott - 1300 00 2481
     
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  3. alexm

    alexm Well-Known Member

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  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Many general insurers (google that term) offer business packages that can include a range of options. PI often is best handled by a broker due to the often complexities with some industries with some insurers not offering cover for some industries etc

    Sub contractors really need to have their own (w/comp) insurance and your compliance process needs to ensure that they do. eg Only engage companies which have w/comp insurances. If you engage non-company contractors you can be liable for what you pay them in your policy cost. Individuals are automatically caught as a deemed worker. Note this can impose a super problem too !! Can get expensive. State laws can impose liability and insurance on you in some cases and its worth understanding what that is. This can also affect payroll tax if its a large enough turnover too. Your state workcover agency will be able to offer guidance.

    icare in NSW + SIRA has a tool to assist you to assess New tool to help employers determine workers compensation obligations
     
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  5. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Here is a example of a person who is a subbie that is a individual who charges based on a hourly rate (or other fixed basis of charge eg daily etc) and provides all equipment etc. This is common in IT, Telecommunications and NDIS services and some more minor construction / landscape etc

    RESULT = DEEMED WORKER
    This assessment has determined that the person is a deemed worker.

    In accordance with s155 of the Workers Compensation Act 1987, you are required to take out workers compensation insurance with a workers compensation insurance agent for this person and any other workers or deemed workers you employ.

    If you already have a current workers compensation policy you will need to ensure that payments to deemed workers are declared as they are assessable as wages. However, the costs incurred in performing the contract are excluded from wages.

    For more information please refer to the Wages Definition Manual.



    BASED UPON A RESPONSE SUMMARY AS FOLLOWS:
    Is the person performing work under a labour hire arrangement as explained above? No

    Select the appropriate classification for the person: Natural person

    Does the person (not you the employer) sub-contract or employ others to carry out work? No

    Does the person independently advertise their business services on a commercial basis? No

    Is the person entitled to annual leave, sick leave, superannuation and/or do they have PAYG tax withheld? No

    Does the person supply specialised plant and/or material to undertake the work? No

    Does the person supply their own tools and equipment? Yes

    Is the person required to wear a uniform or display your company's logo or business name in any other form? No

    Is the person paid at a set rate? This may be hourly, daily, weekly, per brick or tile etc. Yes