Do I Need Subcontractor Insurance When Working on a Big Project?

You’ve won the bid to work on a large construction project with many different companies supplying services to a general contractor. Since it’s a multi-million dollar project, many assume that insurance for the company sponsoring it will cover you and your workers in the El Centro, CA, area. That’s not necessarily true. Armorcrest Insurance Services can help explain why you need subcontractor insurance.

You Could Be Held Liable

Corporate and construction law does not require companies to insure the actions of their subcontractors, so most do not. If you’re working on a big construction project with many other subcontractors, you could be sued by someone injured or feels wronged, even if you were not at fault. The appropriate type of subcontractor insurance will help protect you and your company from unexpected lawsuits.

Types of Subcontractor Policies

The type of policy you should buy depends on your industry. Recommended policies depend on your work, your clients, and your exposure to risk. Every company should carry general liability and worker’s compensation insurance policies. Yet, it would be best to consider other types of policies to cover the scope of your work. Other policies that you may want to consider include:

  • Heavy equipment and tools insurance
  • Commercial vehicle
  • Excess liability
  • Environmental
  • Errors and omissions
  • Surety bonds
  • Professional liability

Benefits of Subcontractor Insurance Policies

The main benefit of any insurance type is to protect the policyholder from financial loss, but maintaining additional subcontractor policies can help you comply with law and contract requirements while protecting your employees and professional reputation.

If you are wondering what type of additional insurance you may need, don’t worry. Contact the professionals at Armorcrest Insurance Services to help you find the best subcontractor policies for your El Centro, CA business.