Are all subcontractors you engage covered by your Professional Indemnity Insurance policy?
The standard IME policy covers you for all services related to bookkeeping. See Recognised duties of a bookkeeper - a description of what is covered under the PI coverage for detail.
Let's say you are a BAS Agent running a business that offers various services. If you engage a bookkeeper to assist you in the provision of bookkeeping services, the standard IME policy will cover you for the work done by that contract bookkeeper.
What if you engage contractors to provide services that are unrelated to bookkeeping? For example you might want to engage a human resources specialist to offer advice about awards; or a NFP grant-writing contractor; or a graphic designer to update a website.
These services are not directly related to bookkeeping and are therefore not covered by the standard Bookkeepers Policy, but they are services that your business has provided to your client. As soon as you bill for any services, your PI insurance must cover you for those services.
In some instances, IME may be able to extend your existing policy for an additional premium, or if this is not possible, they can offer a variety of policies to cover all the services that your business offers.
Depending on the business activities you provide, IME may, also in some instances, tailor an "all-up" policy to suit your individual business needs. If you offer any services to a client that are not related to bookkeeping, check that your insurance policy will cover you for work done by the contractor before billing the client.
Insurance Made Easy is the ICB broker of choice in preparation of Professional Indemnity Insurance program.