As a subcontractor, you will be regularly hired by a General Contractor to perform specialized tasks on their project. Be it roofing, plumbing, HVAC installation, electrical work, flooring, carpentry, painting, or any other construction-related function.
Each of these jobs comes with its own set of risks. This begs the question, are you adequately insured?
Regarding Liability Insurance, here’s what you need to know and how to go about getting the best buy Contractors Liability Insurance.
Contractor Liability Insurance protects you against substantial legal expenses.
In the course of your work, you could get sued for causing bodily injury, property damage, or accused of advertising injury (libel and slander) by a third party, such as a client. Contractors Liability Insurance can help cover attorney fees, court-ordered damages, medical bills, and funeral expenses if you are held liable.
Without this coverage, you’d have to pay for the costs out of pocket, putting you at risk of bankruptcy.
The coverage won’t cover workplace injuries and illnesses.
When shopping around for the best Contractors Liability Insurance to buy, Workers Compensation insurance should also be on the list. Contractors Liability alone will not cover your employees’ costs should they suffer work-related injuries or illness.
In some states, it is mandatory to obtain Workers Compensation coverage if you employ workers.
Most General Contractors won’t hire you!
Construction sites are ranked among the most dangerous workplaces. Recent statistics released by the Occupational Safety and Health Administration (OSHA) in 2019 show that 21.1% of worker deaths in the previous year were in construction.
It stands to reason that potential clients and General Contractors prefer working with an insured subcontractor. Not doing so is a liability that could leave them vulnerable to lawsuits and other expenses resulting from a subcontractor’s actions.
However, the best buy Contractors Liability Insurance will make you a safe bet.
You’re less likely to be covered under the General Contractors Insurance.
When you enter into a new contract, bear in mind that many Contractor Liability Insurance policies do not extend coverage to subcontractors. To protect their business, many General Contractors stipulate in the project contract that subcontractors accept responsibility for defects.
This, in effect, means that you, as the subcontractor, will reimburse the contractor for any court-ordered judgments. You will be held liable should the General Contractor be sued for injuries or property damage, which you, as the subcontractor, were directly responsible for.
Without insurance, this can be very expensive. Therefore, you need to do your research and find the best Contractors Liability Insurance to buy.
Your commercial lease may require Contractors Liability Insurance.
If you’re looking to rent a commercial property from which to conduct your business, a commercial lease is required. Some contracts may require you to carry General Liability Insurance.
The coverage proves to the landlord that in the event of property damage or injuries stemming from your business activities at the rented property, you can pay for the resulting expenses.
Don’t delay; make that call today
At Contractors Liability, we offer the best buy Contractors Liability Insurance policies to protect you when faced with third-party damage or injury claims. Contact us at 866-225-1950 for an instant quote and kickstart your coverage from a top-rated insurance provider.