In a nutshell, contractors are liable for completing a construction project and anything that may happen until it is done. Regardless of how many subcontractors these contractors hire, they will be liable only to the contractors. As a result, subcontractors should also have their form of protection for their benefit.
How General Liability Can Protect You
Whether you are a contractor or subcontractor, you have to make sure that your insurance policies are adequately covered. Many general liability policies can cover some claim up to a certain extent, and you want to make sure that this claim is enough. In case any problem happens, you know if your policy will be able to cover the loss that may incur.
General liability can also protect many contractors from subcontractors if they cannot pay for the damage. Having a general liability policy puts blanket protection for any unforeseeable events or circumstances.
Subcontractor Insurance Protection Against Contractors
Subcontractors may also incur losses if they become liable to their contractors. No company wants that, even if it involves only a short-term project. Regardless of the duration of the work, it is always a good idea to have some form of insurance to cover any liability.
Subcontractors are also like companies, and many forget that they can incur liabilities because of the duration of the project. This is a mistake many people neglect to correct. Many contractors go after several subcontractors for damages and liabilities, which results in many subcontractors occurring several losses and liabilities. This is detrimental to any business, and you want to avoid this.
Managing Your Expectations With Your Subcontractors
You can always choose whom to work with, and you can make preliminary criteria for your requirements. Here are some of the things, which you should watch out for:
Protect yourself from risks and liabilities, and make sure to get an insurance policy for yourself whether you are a contractor or subcontractor. Regardless of the duration of any project, it pays to be wise and invest on the right options to minimize your losses.