Does anyone have any experience of someone paying a self-employed carer/PA who does not have liability insurance?
I spoke to a carer who wants to pay a neighbour to look after their dad to give them some respite, but they do not feel they can ask the neighbour to get insured. I realise it is advisable, but is it absolutely necessary for a self-employed PA to be insured? If the carer had liability insurance, as they would do if they were employing someone, would this also cover them if they were paying a self-employed person?
Hello Justin, Thank you for highlighting this important aspect of the relationship between a self-employed PA and their employer.
For a self-employed person, liability insurance usually applies to their own actions while working. If the PA employer is paying a self-employed person, the insurance may not automatically cover the self-employed PA, as the PA would need their own liability insurance to be fully protected for any incidents they cause while working.
So, It’s important to review the details of the policy to confirm whether the carer’s insurance covers third-party self-employed workers
Without going too deeply into the potential negative consequences of lacking insurance, it’s important to note that individuals using Self-Directed Support funding may have specific obligations regarding hiring self-employed carers. Local authorities may sometimes recommend or even require self-employed carers to have liability insurance to help mitigate risks.
While liability insurance is not strictly required by law for all self-employed carers, it is highly recommended. In some cases, a lack of insurance could impact the validity of certain funding arrangements or care agreements, as Scottish councils or funding bodies may view uninsured care as a liability risk.
Finally, it is important to emphasise that paying a self-employed carer or personal assistant who lacks liability insurance can have significant legal, financial, and practical consequences for both the employer and the carer. Additionally, when services from the PA are provided and accepted by the employer, they are automatically bound to all legal consequences of this relationship, even if they are not fully aware of the implications.
Our local authority does ask for self-employed carers/PAs to have insurance, but in this case the person feels uncomfortable asking someone to do this and would prefer to take on this responsibility themself without the added responsibilities that come with being an employer. They are taking advice from an insurance advisor, so hopefully this will offer a solution.
It’s one of those issues where the choice of the person in receipt of the support can be limited by the requirement for safeguards to mitigate risk, but if the risk is ultimately to the individual rather than to the local authority, then should people be able to make decisions for themselves, as long as they are fully aware of the potential consequences? A conversation for another day…
Hi Josh, local authorities in Scotland do not have the legal authority to require self-employed carers to have a liability insurance, as this is not mandated by law. However, they may recommend it as a best practice to protect both the carer and their clients in case of accidents or claims of negligence.
Self Directed Support Scotland, Norton Park, 57 Albion Road, Edinburgh, EH7 5QY
OSCR Company registered in Scotland SC371469.
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