Does your Australia fleet insurance liability policy have all your bases covered? Does its coverage extend to subcontractors, volunteers and the likes? Many fleet operators today engage in contractual employment and other cost-effective means when hiring workers. Subcontracting allows many businesses to save on high cost of benefits usually afforded to regular employees. It also gives them the opportunity to enjoy more productivity and more skilled choices. But it must be remembered though that accidents and other forms of mishaps are always pointed to the company– regardless if done by a regular employee or a subcontractor.
Understanding Fleet Business Liability
Whether a vehicle is owned or operated by your business or by a subcontractor, potentials risks still proliferate waiting to be unleashed at an unfortunate moment. Collision, for instance, is a common dilemma among truckies traveling 15,000 or more miles each year taking and/or delivering goods or services from one point to another. In fact, statistics will show us that the
se truck drivers have 1 in 10 chance of getting involved in an accident. The scary truth behind that is this– your vicarious liability as a principal will always take front, back and center, regardless if you’ve hired a subcontractor or not.
Fleet operators must always remember that they are always held liable for any negligence of employees– subcontractor or not– while operating a truck, van or any vehicle on behalf of the business. Subcontractor delivery trucks experiencing trouble on the road resulting to ruined goods or injuries will often put your company under fire from claims. With this, it is not only essential to require subcontractor insurance to cover you as an insured party– it is a must!
Preparing For The Inevitable
Running a fleet business can be quite overwhelming. Accidents are too common as such finding affordable fleet insurance liability premium can be a tad difficult. You can save on insurance costs though if you require a subcontractor to include you as an insured party in their liability insurance policy. Subcontracting mechanics or delivery personnel, for instance, can help cost operational expense. However, these workers are still perceived to fall under your protection as they are delegated to perform tasks for the business. Worker to worker claims from injuries acquired during a trip or while performing their tasks can still fall under vicarious liability making you partially, if not wholly, responsible.
To get your business fully protected, it is best to require a subcontractor to fully rev up their general liability policy. A “full hold harmless” on a principal indemnity clause will give your business a huge favor as it transfers weight of responsibility from your shoulders to that of the contracting agency or company. Principal indemnity will help protect you from any vicarious liability