What Type Of Insurance Do Subcontractors Need?

Subcontractors or contractors knowing your insurance needs is crucial.

While subcontractor insurance isn’t mandatory, contractors can require specific coverage.

Some employers may reject subcontractors lacking the right insurance, causing delays and expenses.

Insurance is essential for accident coverage and liability on projects.

Insurance for subcontractors
Insurance coverage for subcontractors: Photo source (Sapling)

We’ll explore common subcontractor insurance options, detailing coverage and importance.

Subcontractor general liability insurance covers accidents, injuries, and damages on their projects.

Contractor insurance usually won’t cover subcontractor.

Employers avoid uninsured subcontractor due to limited third-party coverage.

Subcontractor should carry this coverage to demonstrate their proactive approach to potential employers.

When Do I Need Commercial Auto Insurance?

Subcontractors need commercial auto insurance for regular job-related driving or using a personal vehicle for work. In accidents, others can sue the driver and employer.

Commercial auto insurance safeguards subcontractors and employers from such claims.

What is Professional Liability Insurance

Professional liability insurance protects from mistakes subcontractors make but are unaware of while doing a job.

This coverage is not for physical damage but for claims where a client says a subcontractor did not perform up to standards.

According to Progressive“professional liability insurance is protection for your business from claims of negligence.”

This insurance coverage is important for helping subcontractors cover the cost of legal fees and settlements.

This subcontractor insurance coverage option is important because even if they did not mean to make a mistake, a client can still sue.

Should I Have Workers’ Compensation Insurance?

Workers’ comp rules differ by state; most demand it for full-time employees.

Subcontractor, not considered full-time, may not require it from a general contractor.

Many subcontractors secure their own workers’ comp. Employers often request a certificate of insurance (COI) as proof.

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