Policy mechanics
Professional Indemnity cover for subcontractors and consultants
How liability works when you engage subcontractors or work as one, and what your PI policy does and doesn't extend to.
Key takeaways
- ✓Engaging a subcontractor does not automatically transfer your professional liability to them — you generally remain liable to your client for the overall engagement
- ✓Most PI policies extend to subcontracted work performed under your instruction, often subject to conditions
- ✓Independent subcontractors should hold their own PI cover — relying solely on the main contractor's policy can leave real gaps
- ✓Direct appointment or novation of a subcontractor by the client changes the liability picture and is worth reviewing specifically
Vicarious liability vs your own duty of care
When you subcontract part of an engagement, your client typically still looks to you for the overall outcome — a claim is usually brought against the party they contracted with directly, which is you, even where a subcontractor actually performed the defective work.
You may have a right of recourse against the subcontractor afterwards, but that doesn't change your immediate exposure to the client, or your need for adequate cover in your own name.
What your policy typically covers
Most PI policies cover claims arising from subcontracted work performed under your direction and supervision as part of your own engagement. Some policies attach conditions — commonly a requirement that subcontractors themselves hold adequate PI cover, or that you obtain warranties from them regarding their own professional standards.
Check your policy wording specifically rather than assuming subcontracted work is automatically and unconditionally covered.
If you are the subcontractor
You carry your own direct exposure to the party who appointed you, and in some contract structures, potentially to the end client as well. Confirm your own retroactive date and limit of indemnity are adequate for the actual value of work you're performing, not just for your historical, smaller engagements.
FAQ
Frequently asked questions
Yes — this is both good practice and, on many policies, an actual condition of cover. Request evidence of adequate, current PI cover before engaging a subcontractor on client work.