What Insurance do Subcontractors Need?

Subcontractors are professions that are held to highly strict insurance requirements. This is primarily because these professions typically involve exposures that can cause significant injury or damage to people or property. For example, when a professional in the construction or artisan contractor industry is ready to perform their job duties, they are required to show proof of insurance before any work can be performed and before they are allowed on any job site. In this article, we’ll review the types of business insurance subcontractors should buy.

General Liability Insurance

General liability provides protection in the event that the subcontractor causes damage to property while performing their work. Let’s say you damage a front door while carrying supplies or while installing equipment incorrectly it results in failure or damage, this is where general liability insurance comes in and covers damage costs.

Workers Compensation Insurance

Workers compensation insurance is not only required by law but it will also be required by any general contractor overseeing a project. If a subcontractor performs work without a workers compensation policy in place and an employee is injured, the general contractor will be required to pay for that injury. Most general contractors require each other their subcontractors to demonstrate proof of workers compensations before allowing them to start work.

Commercial Automobile Liability

Your work vehicle is an important tool that allows you to travel from one job to the next. Those who work in the construction industry tend to drive significantly more than other industries which increases the probability of a work-related accident occurring at some point. Because of this, you’ll want to make sure you get commercial auto liability insurance which will cover the costs of injury and damage from an auto accident.

Property Floater (Inland Marine Insurance)

Many subcontractors have thousands of dollars worth of tools and equipment that regularly get transported from job site to job site and in a vehicle. Contractor vehicles are a prime target for theft because thieves know they often contain extremely valuable tools that can be resold for cash. Purchasing a property floater or inland marine policy is the equivalent of purchasing a standalone property policy except it covers business property that doesn’t remain in one location. So, in the event that your vehicle is stolen or broken into, you will have the insurance coverage necessary to be able to repurchase the tools that were stolen and that you need to continue working.

We know that subcontractors and artisan contractors struggle not only obtaining the insurance they need to do their jobs but also paying for it. Get in touch with your UniAmerica Insurance agent today or give us a call at 1-310-835-3373.


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