Bona Fide Subcontractor Insurance Guide

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Bona fide subcontractors are usually treated as independent businesses, which means clients and main contractors often expect them to arrange and evidence their own insurance cover.

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What Is A Bona Fide Subcontractor?

A bona fide subcontractor is usually an independent business brought in to complete part of a job using its own control, methods, equipment and insurance. That is different from a labour-only subcontractor who may work under closer direction and look more like temporary labour for insurance purposes.

The distinction matters because contracts, policy conditions and claims decisions can depend on who controlled the work, who supplied labour or equipment, and whose insurance was expected to respond.

Why Bona Fide Status Changes Expectations

  • Independent responsibility for how the work is delivered
  • Greater expectation of the subcontractor's own public liability cover
  • Need to protect tools, plant, staff and trading continuity
  • More certificate checks before site access or payment approval

Where Buyers Get Caught Out

Problems usually appear when a subcontractor assumes the main contractor will pick up liability or when site paperwork demands certificates the subcontractor does not yet have in place.

Cover Bona Fide Subcontractors Often Need

Common cover questions include public liability insurance, tools insurance, plant insurance, employers' liability where staff are engaged, and professional indemnity where the subcontractor gives design, specification or advice-led input.

Main contractors may also need their own policy to reflect the use of bona fide subcontractors, especially where subcontracted work is a regular part of turnover or project delivery.

What Main Contractors Should Check

  • The subcontractor's insured name and trading entity
  • Public liability limits and policy expiry date
  • Whether the trade description matches the subcontracted work
  • Whether employers' liability is in place if the subcontractor uses staff
  • Whether the subcontractor's policy includes any conditions relevant to the site

How To Evidence Bona Fide Subcontractor Controls

Main contractors are usually in a stronger position when they can show a consistent process for appointing, checking and monitoring bona fide subcontractors. That may include collecting certificates, checking policy dates, retaining risk assessments, recording the subcontracted scope and confirming whether the subcontractor is responsible for its own employees, equipment and supervision.

The insurance presentation should match the contract reality. If a subcontractor is genuinely independent, insurers may expect it to carry its own liability cover. If the relationship looks more like labour supplied under close direction, the risk may be viewed differently. Keeping records helps avoid confusion when a site incident, defect allegation or payment dispute turns into an insurance question.

Records Worth Keeping

  • Subcontractor certificates and renewal dates
  • Written scope, trade description and site location
  • Evidence of supervision and responsibility boundaries
  • Risk assessments, RAMS and permits where relevant

Questions For Renewal

  • How much turnover is subcontracted out?
  • Are labour-only and bona fide payments separated?
  • Do subcontractors use heat, height, plant or design work?
  • Are insurance limits aligned with client contracts?

Related Contractor Guides

Use this guide with subcontractor insurance, contractor public liability insurance and contractor tools insurance.

Related guides: what insurance do subcontractors need, labour-only subcontractor insurance guide, public liability requirements UK and insurance for contractors on site.

FREQUENTLY ASKED QUESTIONS

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Do bona fide subcontractors need their own insurance?

In many cases yes, because bona fide subcontractors are usually expected to operate as independent businesses with their own cover.

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What cover do bona fide subcontractors often need?

Public liability, tools cover and employers' liability where staff are engaged are common starting points.

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Why is this different from labour-only subcontracting?

Bona fide subcontractors usually carry more independent responsibility for how work is delivered, supervised, corrected and insured.

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What should main contractors check?

Main contractors should check the subcontractor's policy certificate, trade description, limits, expiry date and whether the cover matches the work being subcontracted.

Contractor insurance review points

Contractor insurance should line up with the contract wording, the work being performed, the legal entity, site rules, professional duties and the certificates clients expect before work starts.

For bona fide subcontractors enquiries, the strongest quote presentation usually combines the immediate cover request with wider risk information, contract obligations and evidence of controls.

Contract checks

  • Required liability limits, professional indemnity wording and any named-insured or principal clauses
  • Whether the work is design, advice, project management, physical contracting or labour-only supply
  • IR35, agency, public-sector, NHS, BBC, BT, utilities or large-client insurance conditions

Cover areas to compare

  • Professional indemnity, public liability, employers' liability and cyber liability
  • Tools, plant, contract works, temporary works, goods in transit and personal accident
  • Working at height, bona fide subcontractors, labour-only subcontractors and on-site exposure

Quote evidence

  • Contract excerpts, statement of work, turnover, fees, wage roll and subcontractor split
  • Activities, qualifications, site type, claims history and required start date
  • Certificate name, trading style, company number and any client-specific wording