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Understanding Subcontractor Insurance and What You Should Know

Understanding Subcontractor Insurance and What You Should Know

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As a subcontractor, there’s only one thing better than finishing a job and getting paid, and that’s knowing that you are fully covered by your subcontractor insurance. Even on the perfect job, issues can arise that no one can foresee. This is never more true than as a subcontractor. Highly skilled, you could be more exposed then most, and having the right level of insurance cover can save you many sleepless nights if the worst was to happen.

What is subcontractor insurance?

Subcontractor insurance is a must have for any business owner. Subcontractor insurance can help protect you and your business, however big or small from claims that could do you serious financial harm.

It is very important that you tell the truth when you ask for a quote though, as any inconsistencies could affect you if and when you need to make a claim. It is vital that you get the correct cover for your business, so that if the worst was to happen, and someone made a claim against you, you would be fully covered.  

Do I need subcontractor insurance?

While you may not see insurance as vital in your everyday life, if you are a subcontractor on a building site for example, then the chances of something happening are pretty high. It’s all about the amount of risk.

By having subcontractor insurance, you are covering yourself if anything where to happen on the building site, even if it was outside of your control. Protecting yourself against anything happening is important. Have a think; could your business survive if something happened, regardless of if it was your fault or not? Could you business afford to pay out in a lawsuit or in compensation? This is why having subcontractor insurance is so important. It covers you and your business if something goes terribly wrong.

Different types of subcontractor insurance

There are many different types of subcontractor insurance depending on your business and the amount of cover you need. The main coverage areas are called:

General liability

This is the very basic cover that any subcontractor should have. It not only covers property damage but also any accidental bodily harm that you may cause. It could also cover a claim of workmanship. For example, if someone hurt themselves on a floor that you mislaid.

Equipment insurance

There is a good chance that you have some really expensive and specialised equipment that you need to get the job done. Equipment insurance covers them if they get stolen or if a customer’s equipment that you are waiting to install goes missing.

Workers compensation

If you work on a building site then your risk of injury is greater.  Workers compensation covers you if someone on-site is hurt and it is your fault. In some cases, this cover is a legal requirement so please do check before you start any work.

Commercial insurance

If you use any sort of vehicle for your job then it is worth getting it insurance correctly. This will cover you if anything happens to the vehicle or it is involved in any form of accident.

Bonding insurance

You may need this if you are bidding for construction projects. Bonding insurance covers you if you suddenly can’t finish the project for any reason, for example, that you are ill in hospital. This means that the project can still go ahead.

Some public services do require you to have Bonding insurance as it means that they have the guarantee that the project will be finished, whatever happens.

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