Protecting Your Contracting Business
Subcontractors face unique risks that require comprehensive insurance coverage. It's essential to safeguard your business with policies like Commercial General Liability (CGL) to protect against third-party claims for bodily injury, property damage, and more.
Essential Insurance for Subcontractors
Subcontractors Liability Protection
'Commercial General Liability' (CGL) is vital for subcontractors, covering work sites, completed projects, and advertising activities. Meeting coverage limits set by clients or state laws ensures compliance and protection against potential claims. It's crucial to align your coverage with general contractors and consider adding endorsements like "Additional Insured" and "Waiver of Subrogation."
Workers Compensation for Contractors
Workers compensation is a key aspect of insurance for contractors, protecting both employers and employees from the financial impact of work-related injuries or illnesses. Proper workers comp coverage is essential to avoid legal and financial risks.
Certificates of Insurance
In states like Texas and California, clients often require a Certificate of Liability before awarding contracts. These certificates confirm your coverage for General Liability, Commercial Auto, and Workers Comp, ensuring compliance with client requirements and helping you secure projects.
Excess Liability Insurance
Excess Liability Insurance is increasingly required in contracts, as project owners shift liability to subcontractors. Reviewing contracts thoroughly can help identify these requirements and ensure you’re adequately covered.
Subcontractor Agreements and Indemnification
Subcontractors often hire their own subcontractors, making it crucial to have up-to-date agreements, especially regarding indemnification (Hold Harmless) clauses. Having a contract specialist review or tailor your agreements can ensure you're fully protected.
Comprehensive Protection
General Liability Insurance for subcontractors is not just a requirement—it's a critical tool for protecting your business. Along with Workers Comp and other coverages, it ensures compliance with client demands and shields your business from financial risks associated with contracting work.