Who Takes the Responsibility for Contractor Coverage?


The housing market is booming, and for those working in construction, you may have more job opportunities than you can handle. It can be an efficient solution to shift some of the workloads to a subcontractor, but many times your clients will ask you the question “are subcontractors covered under contractors insurance?” since they are worried about who is responsible in the event of an accident.

A general contractor is legally responsible for all of the work involved with a building project. While there are some policies that will include subcontractors as a part of the protection plan, it is important to definitively establish a practice to carry subcontractors’ liability on your own policy but also to only work with subcontractors who carry their own insurance. There are many commercial general liability policies that specifically exclude losses due to work involving subcontractors although done on your behalf.

Any subcontractor should invest his own insurance coverage, as it will bear the brunt of any risk and exposure due to the work or operations. The team at Huntersure recommends that as a contractor working with third parties, it can save you money in the long run if you aren’t having to file claims for losses due to their activities. Fewer losses against the policy will help keep the premium down.