>
Knowledge
>
Bonafide Subcontractors vs Labour Only Subcontractors

Bonafide Subcontractors vs Labour Only Subcontractors

Updated
19 May 2026
Written by
James Sampson
Fact-checked
Feature Directors & Officers (D&O) Professional Indemnity (PI)
Who’s covered? Individuals acting as directors, officers, trustees, or senior managers The legal entity named on the Policy Schedule and, in many cases, its employees while providing professional services
What’s covered? Management decisions, governance failures, regulatory investigations, and alleged wrongful acts Negligence, errors, omissions, breach of professional duty, and civil liability arising from professional services
Common claim scenarios Breach of directors’ duties, regulatory investigations, employment disputes, insolvency allegations, or shareholder actions Mistakes in advice, design, specifications, calculations, recommendations, or other professional services
Where do claims arise? Shareholders, regulators, creditors, employees, customers, and other stakeholders Clients, customers, third parties, and occasionally claims involving intellectual property infringement or defamation
Primary driver Protect the personal assets and reputations of directors and senior management Meet contractual, regulatory, or professional body requirements while protecting against professional liability claims
Importance Essential for anyone making strategic or operational decisions on behalf of an organisation Essential for anyone providing professional advice, design, consultancy, or specialist services
Who buys? Private companies, PLCs, charities, not-for-profits, and regulated firms Sole traders, partnerships, LLPs, consultants, contractors, and limited companies providing professional services
Key Takeaways

dfdsfd

sfdsdf

People Also Ask

No items found.
Written by
James Sampson
Account Executive

With over five years’ experience in cyber insurance, James advises businesses on managing digital risks and securing appropriate protection. He partners with leading insurers and specialist markets to deliver tailored cover that meets each client’s specific requirements.

Reviewed by
Simon Taylor (ACII)
Chartered Insurance Broker

A respected senior industry professional and a Chartered Insurance Broker with over 20 years’ of experience in the commercial insurance sector as an underwriter, broker and director. previously held senior positions at Willis, QBE and Chubb said: “Customer preferences are driving change and insurance brokers have a significant part to play in delivering effective solutions."

Logo with a sword, crown, unicorn, lion, and book above text 'Chartered Insurance Brokers'.
Related Articles
Bodily Injury & Property Damage: Liability Insurance Triggers Explained
What is a Certificate of Insurance (COI)? A Complete Business Guide
The Insurance Act 2015: The Definitive Business Guide to UK Insurance Law
What’s a Retroactive Date?
Chevron down icon
Show More
Comparision
Risk
Logo with a sword, crown, unicorn, lion, and book above text 'Chartered Insurance Brokers'.
Related Articles
No items found.