Subcontracting is normal in security, but the paperwork matters
A large share of the Australian security workforce operates as sole traders subcontracting to head contractors. It is a flexible way to work: you pick up shifts across different firms, sites and event calendars. But subcontracting also shifts responsibility onto you in ways that employees never have to think about. Before you sign on with a new head contractor, it is worth slowing down for a day and getting a few things straight.
You are a business, and businesses carry their own risk
When you subcontract, you are not an employee. That means the head contractor’s insurance program is not automatically standing behind you. If a patron you removed from a venue alleges an injury, if property on a site you patrolled is damaged or stolen, or if you are named personally in a claim, the question becomes: whose policy responds? If the answer is supposed to be yours and you do not have one, you are personally exposed. Your car, your savings and your future income can all be on the line in a liability claim.
This is why most head contractors now require subcontractors to hold their own public liability cover before they will offer work. Many contracts specify a minimum limit of liability for subcontractors, typically $20,000,000. Turning up without it usually means no shifts.
The checklist before you sign
- Your own public liability policy, matched to the work. Make sure the policy is written for security activities, and that the activities you will actually perform are declared: crowd control, static guarding, mobile patrols, loss prevention, whatever the head contractor will assign you. A general tradie-style liability policy is not designed for security exposures like assault allegations arising from restraint or removal.
- Read the indemnity clause in the subcontractor agreement. Many agreements ask you to indemnify the head contractor for claims arising from your work. That is a significant promise. Public liability policies typically exclude contractual liability, so check with your broker before you sign any indemnity clause..
- Your licence, in order and in date. Security licensing is state and territory based, and the class of licence must match the work. A head contractor can be penalised for using unlicensed subcontractors, so expect them to check. Keep copies of your licence and insurance certificate ready to send together.
- Income protection for yourself. As a subcontractor you generally fall outside the head contractor’s workers compensation scheme or your own workers compensation scheme, depending on which state you operate in. If you are injured on shift, whether in an altercation, a fall on a patrol, or a car accident between sites, there is no employer scheme to pay your wages while you recover. Income protection or personal accident and illness cover exists for exactly this gap, and for a sole trader it is often the difference between riding out an injury and losing the business.
- Your vehicle, used for work. If you use your car for patrols or to travel between sites, check that your motor policy notes business use and you have declared the purpose of use. An insurer discovering undeclared commercial use at claim time is a bad day.
Certificates of currency: have them ready
Head contractors run compliance files on their subcontractors. The ones who get the shifts are the ones who can immediately produce a current certificate of currency, licence copy and ABN details. Ask your broker for certificates as soon as cover is placed and keep them on your phone.
Get set up properly before the busy season
With the spring and summer event season approaching, head contractors are building their subcontractor lists now. Being properly insured is not just protection, it is what gets you onto those lists.
Talk to Guardsafe
Guardsafe specialises in insurance for the Australian security industry, including sole trader guards and subcontractors, and we can set up cover that satisfies head contractor requirements without paying for things you do not need. Call 1300 880 320 or contact us to get sorted before you sign.
