What Insurance Do Subcontractors Need?

By   |  11/01/2017

Subcontractors, or artisan contractors, are a profession that is held to extremely strict insurance requirements. This is primarily because this profession typically involves risks that can cause significant injury to people or extensive damage to property. For example, when a professional in the construction or artisan contractor industry is ready to perform their job duties, they are required to show proof of insurance before any work can be performed and before they are allowed on any job site. So, let’s take a look at the types of business insurance subcontractors and artisan contractors should make sure they have in place.

security General Liability Insurance

General liability is the most popular line of commercial insurance and will provide protection in the event that a worker causes damage to property while performing their trade. This can be as simple as damaging a front door while carrying supplies into a home or something more severe like installing equipment incorrectly eventually resulting in failure and damage. As an example, when I had my home built, the plumbing subcontractor accidentally connected the water supply lines to a bathroom sink incorrectly resulting in a very slow leak.  We didn’t discover the error until months later and by that time the water had penetrated the wall and insulation and mold had begun to form. The repair of this damage was all covered by the plumber’s general liability insurance policy.

healing Workers Compensation Insurance

Given that work in the construction industry is physically demanding, employee injuries are unfortunately very common. Workers compensation insurance is not only required by law but it will also be required by any general contractor overseeing a project. If a subcontractor performs work without a workers compensation policy in place and an employee is injured, the general contractor will be required to pay for that injury. Because the general contractor is on the hook if their subcontractors don’t have workers comp insurance, most require each of their subcontractors to demonstrate proof of workers compensation insurance before allowing them onto the job site.At Layr, our subcontractor and artisan contractor customers are able to easily demonstrate proof of insurance using our automated certificate of insurance generator.




local_shipping Commercial Automobile Liability

Your work vehicle is an important tool that allows you to from one job to the next. Those who work in the construction industry tend to drive significantly more than other industries which increases the probability of a work-related accident occurring at some point. As a result, you’ll want to ensure that you have a commercial auto liability insurance policy in place to cover the costs of injury and damage from an auto accident.

build Property Floater (Inland Marine Insurance)

Understandably, many subcontractors have thousands of dollars worth of tools and equipment that regularly get transported from jobsite to jobsite and in a vehicle. Contractor vehicles are a prime target for theft because thieves know they often contain extremely valuable tools that can be resold for cash. Purchasing a property floater or inland marine policy is the equivalent of purchasing a standalone property policy except it covers business property that doesn’t remain in one location. So, in the event that your vehicle is stolen or broken into, you will have the insurance coverage necessary to be able to repurchase the tools that were stolen and that you need to continue working.

As your business continues to grow, you should consider reviewing your insurance coverages quarterly. The risks you and your employees will change and ensuring you have enough of the right insurance protection in place will be essential to helping your company thrive.

Insurance for Subcontractors

We know that subcontractors and artisan contractors struggle not only obtaining the insurance they need to do their jobs but also paying for it. That’s why we partnered specifically with insurance carriers who understand the construction industry and want to work with companies within it. Not only have we made getting the insurance subcontractors are required to have fast and easy but we also allow you to pay for it monthly with a credit card. If you operate a business that services the construction industry, switching to us for your insurance has never been easier. Click here to get started for free.