There is a growing concern for the insurance coverage of subcontractors. Some insurers do not include subcontractors in their policy, and at the end of the day, you will have to pay for their mistake. This should not be the case, and every subcontractor should be insured.
Who Are Subcontractors?
In a construction project, there are two essential persons: the contractor and the subcontractor. Contractors operate on a permanent basis, and they have more say on the outcome of the project. To aid them with the project, they hire subcontractors. Subcontractors are not employees, but more like extra people to get the work done. They perform short tasks which help complete the project, and most often than, involves a temporary relationship.
Ironically, only contractors can get insurance coverage from their insurers. Subcontractors, on the other hand, are not covered by any insurance, exposing them and their contractors to several liabilities. As a contractor, you want to eliminate these liabilities, and you want to make sure you do not have to be liable for them.
Construction Involves Too Many Risks
It is inevitable that some challenges may occur in a construction project. Most often than not, when the worse happens, you often ask yourself who do I go after? The answer should be simple; your insurance policy should be able to cover your liabilities, even those you did not do wrong. If your policy does not include subcontractors, make sure to observe the following:
Options In Choosing A Subcontractor
If you cannot find a subcontractor, which has insurance coverage, you can apply with your insurance agent general liability insurance. This serves as a blanket form of protection for many contractors and a way to mitigate the liabilities they incurred. If general liability insurance is not available, you can also choose an option, which allows add-ons for unforeseeable circumstances
As much as possible, you want to make sure that you do not incur any liability from your subcontractors. You can avoid this by having an insurance policy, which will benefit you and the company in the long run. Having to pay for liabilities will be detrimental to your company.