This is dependent on whether your subcontractors are labour only subcontractors, or bona fide subcontractors. Labour only subcontractors work directly under your supervision and use equipment, tools and materials that you have provided, and may use their own portable hand tools. As they work directly under your supervision, they are, in the eyes of the law, treated as employees of your business, therefore employers liability insurance becomes a legal requirement. Subcontractors who do not work directly under your supervision, use their own tools, materials and equipment, and may specialise in different aspects of work to you, are considered bona fide subcontractors. They are not considered by law to be employees of your business, therefore do not need to be covered under your employer’s liability. Most insurers will apply a condition to your business policy to state that you must ensure all bona fide subcontractors have their own public liability insurance in place.