Uninsured subcontractors ULTIMATELY increase your cost of General Liability, Auto & Work Comp. You can help your own cause and those of your peers by NOT hiring uninsured subs. PROTECT YOURSELF before you allow anyone else on your jobsite!
- A sub damages someone’s property. Are you liable for GL?
- A sub runs over a child at a jobsite. Are you liable for Auto?
- A sub is injured on your jobsite. Are you liable for WC?
If you do not have a certificate of insurance and a binding contract for that sub OR use an uninsured subcontractor-the answer will most like be YES to all scenarios.
If this documentation is not provided and you use an uninsured sub, you will not only be charged additional premium for that exposure, but even worse-your policies could exclude coverage for work performed by uninsured subs.
BEWARE of UNDERinsured subs too! There are many policies that exclude subcontracted work done by subs that do not carry up to certian limits.
IN SHORT…use properly written contracts and obtain certificates of insurance for ALL SUBCONTRACTORS!