Insurance Policies Subcontractors Need

When you hire subcontractors to help you accomplish a particular job, an oftentimes complex question to ask is: how far should their insurance extend? What additional policies should they sign up for so that all of you can secure your respective tasks without worry?

Quote Commercial Insurance recommends the simple tri-coverage of liability insurance, workers’ compensation insurance, and professional liability insurance. Here is why these types of insurance policies matter for contractors and sub-contractors.

1. Liability Insurance - This type of insurance policy protects both you and your subcontractors from the possibility of getting sued—and this is especially important in the case that you are held liable for your subcontractor’s mistakes. This can happen for a number of reasons: for example, if project agreements fall through, a customer gets injured on the subcontractor’s watch, or if you and your subcontractor incur a minor legal violation. At the very least, liability insurance allows for a lawyer to negotiate a settlement for you or defend your crew at a trial.
   
   
2. Workers Compensation Insurance - This type of insurance policy covers the medical and disability costs linked to work-related illnesses and injuries. Regardless of whether worker’s compensation insurance for uninsured contractors is required by your state, it is always a good idea to enlist them for workers’ compensation insurance. Otherwise, it’s the contractor who will be held financially responsible in case of an incident.
   
   
3. Professional Liability/Errors and Omissions Insurance - This kind of insurance policy relates to the mistakes or omissions that your team might have committed on the job. Most clients require you to enlist this policy as a prerequisite of taking on the job. You can ask your subcontractor to enroll in their own professional liability policy as part of your own contract with each other, and both parties should be ready to keep the professional liability coverage active for the length of time you spend in the business—as you never know when a claim will be made, even long after the job is done.

Ensure that these three types of insurance are included in your policy and don’t be afraid to demand proof of coverage before you shake hands with your subcontractor before you work together on a job.

A Custom, Thorough Insurance Process from Quote Commercial Insurance

Curious about the particulars of each insurance policy or want to make sure that your interests are protected? Get on board with Quote Commercial Insurance for a process that guarantees clients exactly what they are looking for — no hidden charges.

Contact us today at 844-331-7076 if you have any questions about our insurance policies. We can provide a free quote for all of your insurance needs.