Insurance for Subcontractors
Owners of subcontracting businesses must be team players. The primary client is another contracting company and your job is to make sure they get the services or products they need to complete their contracts and obligations. Protect your subcontracting company from the wide number of problems that can arise with the right types of commercial insurance coverage.
General liability insurance is much like it sounds. It provides you with general protection against a number of different types of liability that can arise in your business operations. It can protect you from liability that arises from products, services or advertising. It can protect you from financial hardship caused by unexpected events and hazards. General liability protects you from all problems unless they are specifically excluded from your insurance policy.
Business Owners Policy (BOP)
A business owners insurance policy is designed to protect you from specific types of tangible and intangible financial losses. This policy includes general liability and allows you to pick and choose specific types of additional property protection.
- Equipment Breakdown – When equipment breaks down you may not be able to perform your job properly. A BOP can help pay for repairs and equipment replacements if necessary.
- Buildings and Contents – Any physical business structure that you use in your subcontracting operation is subject to damages or loss from fire, water leaks and other events. The assets you have inside of your buildings may also get damaged or ruined. A BOP can protect your building, the property inside, the outdoor assets such as fences, and any equipment you have on the job site location.
- Business Income and Extra Expense – When your business buildings or physical assets are destroyed you become at risk of losing income. Whether you have to temporarily stop work and wait for repairs or you have to rent workspace and equipment, these costs could add up.
- Products and Completed Operations (Included in General Liability) – If your subcontracting company completes a project but later is sued due to damages caused by the work you did, your commercial insurance coverage can cover the related damages.
- Electronic Data – If your subcontracting company uses specialized software and digital media, the BOP can protect it from damages and loss.
- Newly Acquired or Constructed Buildings – As your company grows and adds structures, the BOP can expand its coverage to newly acquired locations.
- Employee Dishonesty Coverage – If your company is subjected to dishonest actions by an employee, the BOP can help protect you from having to shoulder those expenses.
Subcontractors travel regularly from one jobsite to another. With frequent driving, the chances of having an auto accident increase dramatically. Commercial auto insurance protects you from related accident losses and expenses.
Workers comp insurance is required for all companies that have employees. Workers comp pays for your employee’s medical bills and related expenses if they are ever injured on the job.
Professional liability insurance, or errors and omissions, is designed to protect you from financial liability that arises due to mistakes you make as a professional.
As a subcontractor, your customers rely on your products and services to complete their own professional contracts. If you fail to deliver, your customers may suffer big financial losses of their own. A surety bond provides guarantees to your customers that you will fulfill the obligations specified in your contracts.