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Why You Should Know If You Have An Uninsured Subcontractor

Are You Working With An Insured Or Uninsured Subcontractor?

Why Is Important To Know If You Have An Uninsured Subcontractor?

If you are in the construction industry, or are hiring for your real estate or small business project, then you need to know if you are dealing with an uninsured subcontractor.  Here's why this is important.

Are You Dealing With An Insured Or Uninsured Subcontractor?

The best way to find out if you have an insured or uninsured subcontractor is to simply ask.  If you are not comfortable asking directly then there are many websites and review boards that would help you determine what type of insurance the subcontractor may have, if any.  Do not be afraid  to open up a line of communication to determine what type of insurance they might have, as it would directly affect you.

In addition, it is also important to know what type of insurance they may have, as insurance types can differ from industry to industry, and from specialization to specialization.   For example, you must know if they are a general contractor or a sub, or artisan contractor.  An artisan contractor typically refers to those in specialized fields, such as HVAC, plumbing, etc.

What Happens If You Have An Uninsured Subcontractor?

If you do subcontract all of your work, then you need to know whether or not your subcontractors are insured or uninsured.  This is because insured subcontractors, who can show proof of insurance, will allow you to get a better rate.  Whereas, uninsured subcontractors will not only mean that you will have higher rates, but if anything were to happen on the premise, even if it is solely their fault, you may still be held liable.

Remember, this is important no matter what scope of industry your business might fall into.

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Are You Shopping for General Contractor Insurance?

Do You Need General Contractor Insurance?

More Importantly, What Do You NEED To know When Shopping for General Contractor Insurance?

As a general contractor, when shopping for insurance, it is possible that you can go to the wrong agent or agency when shopping for general contractor insurance.  Essentially, if you go to the wrong agent or company, and they lack working knowledge of general contracting – then you can find yourself with gaps in coverage.

In addition, if you own a construction firm or are a real estate investor flipping houses, this type of insurance is often a must-have.

What Is General Contractor Insurance?

General contractor insurance, true to its name, offers additional protection when it comes to contractors.  Whether that means that this is an issue of builder's risk, or whether it means that the coverage is there to protect property damage or a job that is not sufficiently done, or is not done to completion.

Why Is General Contractor Insurance Needed?

It is often needed because general contractor liability insurance can pick up where general liability insurance leaves off.   In addition, general contractor insurance can be highly specialized.  For instance, what kind of work are you actually doing?  If you are doing plumbing, this should be stated, if you are doing concrete, this should be stated, and so forth.

Moreover, you have to also state what sub contractors you are working with, as their insurance coverage matters.  General contractor coverage WILL help protect you and your assets.