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We have a claim where a client's vehicle was stolen. Also taken from the premises was an uninsured vehicle owned by a contractor that he used in connection with his work for my client
The contractor in question is a retired person, he performs his duties for my client only, and invoices them each month (I believe he works most days). I recall another unrelated situation involving contractors where I was informed that if a contractor is performing work solely for one organisation he can be considered an "employee". 
My client's policy includes a cover for "Employees Vehicles" not otherwise insured, if used in connection with that occupation. There is no definition of an "Employee" in the policy, so we must rely on the legal definition. I am obviously looking to try an obtain cover via this extension.

Reply…  Crossley Gates,

Whether the contractor is an employee or not is a factual test.

The main test which distinguishes an independent contractor from an employee is the degree of control which the employer is entitled to exercise An independent contractor is one who is not bound generally to obey orders the employer may from time to time give, so is free to act as he or she thinks fit within the terms of the contract.

One indication of whether the person is an employee or not is whether the "employer" deducts PAYE tax. The answer is not determinative though.

Usually an employee will be subject to an employment agreement.

It is hard to make a call on your situation based on the limited information available.

December 2018

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