Buy Subcontractor Insurance

Subcontractor insurance is a type of liability insurance that provides protection for independent contractors who are working for a contractor or business owner.

This type of insurance covers the subcontractor's liability for damages or injuries that occur as a result of their work, including property damage, bodily injury, and other types of losses. It also protects the subcontractor from claims of negligence or breach of contract.

Subcontractor insurance is typically required by the main contractor as a condition of doing business, and it helps to ensure that all parties involved in a construction project are properly protected.

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small subcontractors ranges from $37 to $79 per month based on industry, location, size, payroll, sales and experience.

When you are comparing insurers and the different subcontractor insurance policy options offered, of course you want to know what you are paying for.

What exactly is going to be covered/insured, when you choose a policy with a particular insurer?

Some of the coverage options you can include when choosing this type of insurance policy are:

• General liability coverage to protect you against third part claims of bodily injury and property damage.
• Damage/loss of property or equipment.
• Injuries on the job site (as well as medical expenses).

You should also consider what type of work you are doing so you can decide if additional coverage might be required - like workers comp or umbrella excess liability. The truth of the matter is the level and types of coverage you choose will vary for each job and each client which hires you.

So the only way to truly know what you need, is to compare policies and learn about coverage options, based upon the type of work you perform as a 1099 subcontractor.

Business insurance policies are complex and even if the price is lower with one insurer, this doesn't mean jump on board and purchase with them. Your subcontracting insurance policy is only as good as the company that is writing it.

How is their customer service? How fast can you get proof of insurance? It's important to choose a reliable insurer that has the coverages and limits you require.

So before you buy, make sure you ask relevant questions pertaining to your coverage:

• Am I fully protected if I am at fault?
• How long will it take until the policy claim is paid?
• What if loss/damage occurs due to the negligence of another party (and what if they aren't insured)?

Subcontractors can be sued for a variety of reasons, including:

Breach of Contract: Subcontractors may be sued for failing to fulfill the terms of their contract with the general contractor or the owner. For example, if a subcontractor fails to complete their work on time, or performs work that is subpar or not up to code, they could be sued for breach of contract.
Insurance can help pay for the legal costs associated with defending against a breach of contract lawsuit. For example, a subcontractor could purchase errors and omissions (E&O) insurance, which would cover the costs of defending against claims of professional negligence or errors.

Property Damage or Personal Injury: Subcontractors can be sued if their work causes property damage or personal injury to others. For example, if a subcontractor accidentally damages a homeowner's property while performing work, they could be sued for the cost of repairing the damage.
Insurance can help pay for the damages or injuries caused by a subcontractor's work. For example, a subcontractor could purchase liability insurance, which would cover the costs of defending against claims of property damage or personal injury caused by their work.

Failure to Follow Safety Regulations: Subcontractors can be sued if they fail to follow safety regulations on the job site. For example, if a subcontractor fails to provide proper safety equipment for their workers, and an employee is injured as a result, the subcontractor could be sued for negligence.
Insurance can help pay for the legal costs associated with defending against claims of negligence. For example, a subcontractor could purchase general liability insurance, which would cover the costs of defending against claims of negligence or carelessness.

Misrepresentation: Subcontractors can be sued if they make false or misleading statements to the general contractor or owner. For example, if a subcontractor misrepresents their experience or qualifications to win a contract, they could be sued for fraud.
Insurance can help pay for the legal costs associated with defending against claims of fraud or misrepresentation. For example, a subcontractor could purchase commercial crime insurance, which would cover the costs of defending against claims of fraudulent activity.

In summary, insurance can help protect subcontractors from the financial impact of lawsuits. By purchasing the right type of insurance coverage, subcontractors can mitigate their risks and have peace of mind knowing that they are protected against unforeseen events.