Subcontractors’ insurance

Professional insurance for subcontractors

As a subcontractor you have to be flexible. You go where the job needs your skills. Now that could be for a day, a week, a month or more.

But wherever you are, and no matter how long, one thing stays the same. If something goes wrong, you’ll have to fix it. Or pay up if you can’t.

It could be an unhappy client claiming you made a mistake. An accident on-site they say is your fault. Or a cyber-attack that shuts down your website and leaks customer data.

Without the right insurance, any of these could cripple your business. And the more clients you take on, the greater the chances of something going wrong.

Protect your work, your income and your reputation with insurance for subcontractors. If you find yourself facing a legal claim, it gives you the resources to defend yourself, pays medical bills and damages too.

• Who needs subcontractors’ insurance?

  Do you work on client’s sites or premises? Do they come to you?

  If you answered ‘yes’ to either of those questions, you need general liability insurance.

  As a subcontractor, clients may well require you to have general liability insurance before they’ll sign a contract with you. Particularly if it’s an independent contractor, or small firm, wanting to use your skills for a specific job.

  That’s because it protects them from being sued if you injure someone or damage property while you’re working for them.

  Of course, it protects you from the cost of a lawsuit, too. And can pay for medical bills, repairs and replacement costs and compensation if it’s due.

  What’s more you can add cover for your tools and equipment to your general liability policy. Which is pretty handy. After all, it could be tricky to work if they get lost or stolen, and you can’t afford to replace them immediately.

  Do you have paying clients?

  If the answer’s yes, professional liability insurance for contractors is a must-have. Because if clients pay you for your services, that makes you a professional. And professionals can be sued even if there aren’t any grounds.

  If you find yourself in a legal dispute with a client over your work, professional liability insurance (or errors and omissions as it’s also called) can get you an attorney and pay legal fees and compensation.

  Do you use email? Own a website? Store client data?

  You may think you don’t need protecting from cyber criminals. But if you use email, or own a website, or store client data, you’re a target. And with cyber attacks on the rise, sadly it’s more a question of when, not if, you’ll be hacked.

  Subcontractors’ cyber liability insurance gives you the technical and financial resources to recover from an attack and get you back on your feet again fast.

• What does subcontractors insurance cover?

  There’s a policy to cover pretty much everything subcontractors need.

  Professional liability insurance covers the cost of claims you made a mistake, or failed to deliver what you contractually promised. When you have paying clients, this policy is a must-have. Because clients can sue you even if the claim has no grounds.

  General liability insurance covers damage to another person or their property. You can add business equipment cover to your policy too so it’s protected in your office, out on-site and on-the-road.

  Cyber liability insurance covers the costs of a cyber-attack. As well as the financial resources you need to recover, you get technical support too.

  But if you’re not sure what subcontractor liability insurance you need, and want to talk through your options, call us. We’re always happy to help. And we’ll get you the right coverage, fast.

• How much is insurance for subcontractors?

  The cost of insurance for subcontractors varies. It depends on what industry you’re in, your annual income and where you’re based.

  Pay monthly, or in quarterly installments, or in one lump sum. Whatever works best for you.

• Does a subcontractor need workers’ compensation insurance?

  It’s complicated.

  In most cases, subcontractors are classed as separate entities from the organization they’re working for, not employees. That usually means, the firm you’re sub-contracting for isn’t required to carry workers’ comp insurance for you.

  However, they may insist you have workers’ comp. That’s in case you get injured on the job and try to claim against them for your medical bills and lost income.

  It’s good protection for you to have, though. Because health insurance doesn’t usually cover workplace injuries.

  If you’re working for an independent contractor, they may be required by the state to carry workers’ comp insurance for you. But as the rules vary from state to state, it’s best to check with your Department of Labor.

  For more information read our blog post: Workers compensation for contractors & subcontractors: Who needs it?