Question: Do My Subcontractors Need Insurance?

Is a subcontractor the same as an independent contractor?

Subcontractor vs Independent contractor is a difference in an employment relationship with a laborer.

Independent contractors are employed and paid directly by the employer while subcontractors are employed by an independent contractor and are paid by them..

Do subcontractors need professional indemnity insurance?

Along with public liability, which covers property and other people, your contractor must have adequate protection in the event of legal liability. This is where Professional Indemnity insurance is important.

Does a contractor have to be insured?

Contractors and carpenters should have a general liability policy or CGL that is designed for their field of work. Professionals such as CPAs and consultants should carry professional liability insurance, which includes errors and omissions coverage. Hired workers should also carry workers’ compensation insurance.

What kind of insurance do subcontractors need?

General liability insurance is a type of subcontractor liability insurance that protects against lawsuits over third-party bodily injuries and client property damage. Many small companies won’t work with subcontractors unless they carry their own general liability insurance.

What is the minimum amount of general liability insurance the contractor must carry?

General Liability Insurance (CGL): $1,000,000 each occurrence (combined single limit for bodily injury and property damage); $1,000,000 for personal and advertising injury liability; $1,000,000 aggregate on products and completed operations; $2,000,000 general aggregate.

Can a contractor sue you if they get hurt on your property?

If a homeowner decides to hire a contractor to renovate or repair a house, can the contractor (or a sub-contractor) sue the homeowner for injuries that happen on the job? Under a legal theory known as premises liability, the answer could be “yes”.

What is a subcontractor cost?

Subcontractor Costs means all costs incurred by subcontractors for the project, including labor and non-labor costs.

What happens if your subcontractor does not have insurance?

If a subcontractor does not have its own workers’ compensation coverage, the exposure of the subcontractors’ employees will be placed on your workers’ compensation policy as an uninsured subcontractor when your policy is audited, and you will be charged a premium for their payroll.

How much is insurance for a subcontractor?

The cost of general liability insurance averages around $500 to $800 per year for subcontractors, depending on your trade.

What do I need as a subcontractor?

Steps to becoming a subcontractor:Ensure you have the right trade qualification.Decide on and setup your business structure.Obtain any applicable licenses.Setup your business insurance.

Should a handyman be insured?

Every contractor should have some kind of business insurance that protects them when they go into homes. … A business insurance policy can be drafted by the handyman in order to protect him against injury, as well as any damage that he does to your home.