Subcontractors should have similar liability limits as the general contractor. If the project owner requires umbrella excess coverage, subcontractors should have the same limits. Make sure they name you as an additional insured on their liability certificate for general liability with a waiver of subrogation. They should also list you as an additional insured for commercial auto with hired & non-owned autos. Get workers comp certificates with a waiver of subrogation. Always include subcontractors in your 'subcontract agreement'.
We have a sample 'subcontractor agreement' that can help protect you. Let us know if you want a copy to review. You can change the text. The key part is the hold harmless/indemnity agreement, which helps separate you from your subcontractor. We suggest getting advice from a contract specialist to create one that fits your business needs.
OCP (Owners Contractors Protective) is often required by owners. It protects them from lawsuits by the general contractor's or subcontractors' employees claiming negligence for job site injuries. It covers defense costs for the owner. Sometimes this is already in your general liability policy or additional insured endorsements.
Remember, referrals are the best!
We hope you're busy and doing well. We're here to help contractors and business owners with many types of commercial insurance and surety bonds like bid, performance, and payment bonds. As you know, referrals are great.
The market keeps changing. Many contracts now require excess liability insurance. Project owners are shifting liability to contractors through contracts. We can help review your clients' contracts. Is your subcontractor agreement, especially the indemnification (hold harmless) part, up to date? We have a sample agreement you can change, or better yet, have a contract specialist tailor it for your company. Let us know if you want a copy.
All construction phases should have Course of Construction/Builders Risk insurance (Subcontractors should ask for this; banks often require it too). Talk to us about why this coverage is so important.