As the name implies, subcontractors are hired by contractors and other businesses overseeing the renovation or construction of a home or business. Since these subcontractors are often hired for a specific part of the job, they aren’t covered under the contractor’s insurance. This makes mistakes and issues that arise on the jobsite quite costly unless the subcontractor has insurance as well.
Wondering what types of insurance are available for subcontractors? Here’s how you can protect your livelihood on your next subcontractor job.
Business Owner’s Policies
Like other businesses, you’re eligible for a BOP, or Business Owner’s Policy. These insurance plans often include several different types of insurance, covering you from all angles. Usually, they consist of commercial property insurance and general liability insurance, which will kick in if you accidentally damage a client’s property while you’re repairing it. This insurance plan will also cover damage to your business’ office and storage space, so if something accidentally catches on fire, you won’t have to pay for repairs and replacements out of pocket.
Professional Liability Insurance
Professional liability insurance is designed to help you with monetary damages should something go wrong. It also helps when you end up getting sued for not completing a contract or making some other mistake on the jobsite. Also called Errors and Omissions Insurance, these policies are designed for small business owners of all types. Need an example of where professional liability insurance comes into play? If you fail to fulfill the terms of the contract for any reason, the other party could sue you. The insurance will help pay for legal costs and fines.
Tools and Equipment Insurance
While a business owner’s policy takes care of things that could happen at your shop or office, it doesn’t cover your tools. If a valuable tool, like a generator and related power lines breaks down at a worksite, you’ll have to pay to get it fixed. You could end up postponing the job for several days, setting everyone else behind. Tools and equipment insurance can help pay for those delays, as well as the costs of getting the generator or other pieces of equipment repaired.
Commercial Auto Insurance
If you own a business and use a vehicle for work purposes, your personal auto insurance won’t apply to any accidents or damages incurred while on the job. You’ll need to have a commercial auto insurance policy instead. Any time that your vehicles end up being used primarily for work and not personal use, you need to have a commercial policy in place. Otherwise, you could be forced to pay out of pocket if you’re found to be at fault for an accident.
Worker’s Compensation Insurance
If you hire employees through your subcontracting firm, you need to have worker’s compensation insurance. This is particularly true for workers who spend their days on a jobsite. Getting injured on the job is much more likely when there are hammers, nails, power tools, and other things that are used throughout the course of the workday.
Have Questions? Contact Charlotte Insurance
Want to learn more about available subcontractor insurance offerings? Contact Charlotte Insurance. Our agents can explore and explain all available options to you and put together the customized coverage plan that you need.