Many general contractors rely on subcontractors to complete a variety of projects on a larger job site. These contractual workers come with their own liabilities. There are a few things contractors should know before contracting these workers.
According to Huntersure, contractors cannot rely on their general liability policies to cover bodily injury and property damage caused by a subcontractor. The policy only covers the business insured. Subcontractor insurance covers the subs on the job and any damages or injuries caused by them or their work. Contractors can include riders to protect against subcontractors and require subs to carry their own errors and omissions policies.
A subcontractor does not work for the contractor which can cause headaches for the general contractor if the sub fails to do their job, acts inappropriately or does poor work. Subs represent the contractor while on the job site. Taking the time to carefully vet subs can help reduce the pitfalls that come with hiring out.
Many subcontractors bring skillsets and expertise that the general contractor needs for a specific project. Using subs allows the contractor to bid and take on projects that require more labor and skills than they have employed.
Even the best sub can make mistakes that could cost the larger project money. Subcontractor insurance helps protect the contractor from the sub’s liabilities.