Do people / companies that do work for the Parish council need to have liability insurance

Question

Hi

We recently found out that there are people/companies doing paid work for the parish council that may not have any kind of insurance (such as liability insurance) in fact some of this is being done by relatives of councillors without being offered to tender.

Do these individuals need to have some kind of insurance and should the jobs be offered out to tender prior to being given out to a company to do the work.

Thanks

Answer 1

Yes!!!

If they employ someone they must have employers liability insurance.

If they have interactions with the public (or the Parish Council) or do any work that could go wrong, they should have public liability insurance, otherwise they WILL lose their house if something goes wrong.

It should be written into every contract that a contractor has insurance, e.g. if the Parish needs to make a claim against them in the future.

Answer 2

There is a history of mates and mates rates for people doing work for the council. For many years it was somebody  in the village who was classed as a public spirited individual that would get paid cash in hand. Most councils are moving into the twentieth century now moving to tenders being upgraded every year. Rome was not built in a day and sometimes it can take years to address all the “inheritance.”

Be mindful all these new rules and regulations come at a cost and be prepared to put the precept up as many people have to do courses and have PPE which will bump the cost up.

Also handle it with care as members of the community helping the council out, suddenly being “dumped” will bring community members out in force especially if the bins aren’t emptIed etc. Sometimes there is an agreement set up in the interim that the insurance is covered by the parish council until the current person gives the role up naturally.

if there was no end date on the original agreement, proceed with caution especially if it has been over two years, you may be changing the contract and they may take you to a tribunal for breach of contract. If they have a disability, this could also be used against the council.

Comments

"...insurance is covered by the parish council..." For volunteers, yes, for employees, yes, but for paid contractors? I doubt it.

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Not supposed to pay honorarium every year either!!!

Answer 3

The only legal requirement is as stated here:  https://www.hse.gov.uk/pubns/hse40.pdf

There are limited exemptions for family members.

There is no 'legal' requirement for public liability or professional indemnity although it may be a requirement of the contract of engagement.

It may also be a condition of grant funding from LA as in the example of a local maintenance grant for public rights of way - qualification to draw down the grant to a PC from a LA may be conditional upon the contractor having PL insurance to a stated limit.