Northern Territory Consolidated Acts Northern Territory Consolidated Acts(1) Where a person (in this section referred to as the principal ) intends to contract or has contracted, other than under a contract of service or apprenticeship, with another person (in this section referred to as the contractor ) for work to be done by or on behalf of the contractor, the principal may obtain from an approved insurer a policy of insurance or indemnity (in accordance with Schedule 2, with the necessary changes) which, in relation to the work specified in the policy of insurance or indemnity as work to be done by or on behalf of that contractor, covers:
(a) the principal's liability under this Act;
(b) the contractor's liability under this Act; and
(c) the liability under this Act of those persons with whom the contractor intends to contract or has contracted in order to fulfil his or her contractual obligations with the principal.
(2) It is a defence to a prosecution for an offence against section 126 where the defendant satisfies the court that his or her liability under this Act is the subject of a policy of insurance or indemnity under subsection (1).