Insurance for casual workers/volunteers

looksee

I have just been discussing on another site what the insurance situation is if you employ or have as a volunteer someone working/helping out on your land.

In this case it was a 'would anyone like to do some chainsaw work for me in return for holiday type accommodation'. Their argument is that since the person is not employed - no money will change hands - they don't need insurance.

I took out employers and public liability insurance on a piece of land I will be building on (leave the builder out of this discussion, this is about work on the rest of the land) and am under the impression that if I have friends/ casual workers on the land who would not have their own professional insurance I could be liable in the event of an accident. Also I have a responsibility (beyond common sense) to make sure they are competent (ie trained) to do the job.

Am I worrying too much, or is the other person right?

I hope this is not considered 'legal advice', just looking for people's experience.

NUTLEY BOY

looksee wrote: »

I have just been discussing on another site what the insurance situation is if you employ or have as a volunteer someone working/helping out on your land.

In this case it was a 'would anyone like to do some chainsaw work for me in return for holiday type accommodation'. Their argument is that since the person is not employed - no money will change hands - they don't need insurance.

I took out employers and public liability insurance on a piece of land I will be building on (leave the builder out of this discussion, this is about work on the rest of the land) and am under the impression that if I have friends/ casual workers on the land who would not have their own professional insurance I could be liable in the event of an accident. Also I have a responsibility (beyond common sense) to make sure they are competent (ie trained) to do the job.

Am I worrying too much, or is the other person right?

I hope this is not considered 'legal advice', just looking for people's experience.

A thorny and complex topic. This is not legal advice just a trawl through general principles applicable to the scenario you describe.

Firstly, it is possible for a volunteer to constitute an employee. There is no solid definition of the employee concept. There are a number of tests to be applied to determine if the master / servant [employer / employee] relationship exists. The principal test is one of control. If you retain the right to control the method by which an individual does their work that creates a strong inference that you are an employer and that they are an employee. This is not to be confused with directing to a person the end goal of what is required.

So what if he is an employee ? If he is an actual employee it means that you will owe that individual a number of specific legal duties of care that are particular to the master / servant relationship and which exist over and above the general duty of care.

If the individual is a volunteer who is not an employee you still owe him a duty of care.

If there is an accident the employers' liability insurance should pick it up if the master / servant relationship is found, on the evidence, to exist. In the alternative, the public liability insurance should pick it up if not an employee.

Be careful about insurance.

Some liability type policies specifically exclude claims arising from the use of chain saws. Insurers can do this as public liability and employers' liability insurances are not compulsory under statute.

You need to be very careful that the insurance underwriters are fully aware of the nature of the activity which you are carrying on. Commercial liability policies that I have seen require that the "business description" is accurate. Otherwise, you face the risk of no cover if the activity causing the accident is deemed to fall outside the scope of the business description.

In answer to the point about no employment existing if no money changes hands I am not in agreement. The provision of the accommodation could constitute consideration in the contractual sense.

My 10 cents worth.........

looksee

Thanks for that, some good points to ponder. Especially the bit about accurate description, I will recheck it, though I think it is ok, I gathered it covered me to build multistorey buildings and everything down from that! I will take on board the rest of your points, they all made sense to me.

The pity is that this was in the context of volunteer work, time was no one would have even condsidered or had to consider whether insurance was needed.

ganmo

This topic is a regular consideration in the farming section here.
the way I boil it down is if you(landowner) tell someone to do something they are employed by you in the eyes of insurance.

Marcusm

looksee wrote: »

I have just been discussing on another site what the insurance situation is if you employ or have as a volunteer someone working/helping out on your land.

In this case it was a 'would anyone like to do some chainsaw work for me in return for holiday type accommodation'. Their argument is that since the person is not employed - no money will change hands - they don't need insurance.

I took out employers and public liability insurance on a piece of land I will be building on (leave the builder out of this discussion, this is about work on the rest of the land) and am under the impression that if I have friends/ casual workers on the land who would not have their own professional insurance I could be liable in the event of an accident. Also I have a responsibility (beyond common sense) to make sure they are competent (ie trained) to do the job.

Am I worrying too much, or is the other person right?

I hope this is not considered 'legal advice', just looking for people's experience.

You might have occupier’s liability even if it does not constitute an employer/employee relationship. It is your property, you need to be careful as to the skills, competencies and insurance status of those who work on it.

Eggs For Dinner

Excellent analysis by Nutley Boy. I can't stress enough that the Business Description is key with liability policies. If your policy, for example, describes you as Property Developer, Insurers could reasonably argue that tree felling using chainsaws is not a normal activity associated with the business. However, when you were arranging the cover, you disclosed to insurers that you were developing a woodland for housing, they should expect the activity and insert the appropriate conditions.

Chainsaw conditions are very specific and include professional certification and site control

Glass fused light

Eggs For Dinner wrote: »

Chainsaw conditions are very specific and include professional certification and site control

Allowing a untrained person to use a chainsaw could also possibly leave an employer open to a charge of manslaughter if an accident was fatal, and any accident would likely be reportable the HSA. Who has the power to charge the employer on lesser accidents.