If you are a business owner and you do not have the manpower or know-how to complete certain projects, hiring a subcontractor would be the best solution. Unfortunately, hiring someone can create some insurance issues you are not ready to deal with. Before you hire anyone, it would be a good idea to consider all of the following information.
Anyone who does work for others needs to have general liability insurance. This type of coverage protects you in the event that damage occurs when you are on the job. For instance, if you were hired to wash someone’s windows and you end up breaking one of them during the process, your insurance would cover this.
When you are dealing with subcontractors, they are not covered under your policy. It is important that they have their own in place. If they do work on your behalf and something happens, they would be deemed liable. In the event that they do not have any insurance, this responsibility shifts to you. In order to avoid this fate, you need to verify general liability coverage before allowing anyone to do any work for you.
Another thing to keep in mind is the fact that having the subcontractor add you as “Additional Insured” will protect you as well. In the event that your company is sued because of something that was done wrong by the subcontractor, their carrier will be required to pay on the claims, not yours.
This is another kind of coverage that should be verified before you decide to have anyone work for you. If workers sustain injuries or become ill while they are on the job, they have the right to file a worker’s compensation claim. You do not want to be left holding the bag if you hire a subcontractor that does not have this kind of policy. As with general liability, you must refuse to work with anyone that cannot furnish proof that they have this type of insurance coverage in place. Visit our website to know more .
Professional Liability/Errors & Omissions
Sometimes there are mistakes made and it leads to clients incurring financial losses. You should always have this kind of insurance so you do not run into any issues later. When you are looking for this kind of coverage, make sure that the policy you decide on has a clause that protects you in the event that the issue was the fault of a subcontractor.
When you are trying to hire help, make sure that they have this type of coverage as well. This means that everyone will be covered in case something goes terribly wrong.
As you can tell, it is important for subcontractors to have a few different types of insurance coverage when they are working for others. If you want to be on the safe side when hiring help, make sure that you ask about this. In addition, you should have them provide proof they have policies so that you don’t run into any issues later. Know about auto insurance company .