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Consultant – Employee Or Independent Contractor?

Consultant – Employee or Independent Contractor?

You may require clarification as to whether a consultant to your law practice is covered under your practice’s PII policy for the legal services they undertake for and on behalf of your practice.

Your consultant will also require clarification as to whether he or she is covered under your practice’s PII policy for the legal services that he or she performs for and on behalf of your practice.

The definition of employee in the Lawcover PII policy makes a distinction between a solicitor engaged on a short term or fixed term basis (such as a consultant), and an independent contractor. A consultant may be covered under your policy whereas an independent contractor is not covered, and is required to make their own professional indemnity insurance arrangements.

Lawcover will require you to complete a Consultant Checklist in order to determine whether the consultant will be treated as an employee or an independent contractor for the purposes of the policy. This determination will direct our advice to you as to whether the consultant is covered under your PII policy, or whether they are required to arrange their own PII policy. This determination also dictates where the fee income that the consultant generates should be declared.

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