Construction jobs are some of the most intensive and most liability-heavy positions. There are many risks involved for both contractors and subcontractors.
There are the risks related to employees getting injured. There are other risks such as faulty builds and planning. If you are a contractor or subcontractor, the best way to reduce these risks is to have comprehensive business insurance. Plan the coverage to meet the specific tasks of the type of work you do.
What Type of Insurance Do Construction Subcontractors Need?
Contractors often have policies that cover their risks but will require their subcontractors to have their own coverage. The coverage can be for the job at hand, such as through the use of surety bonds. However, subcontractors are running a business. As a result, they have to keep the insurance necessary to protect their business and their assets.
Some types of business insurance for subcontractors are the following:
- Asset protection – Whether it is just equipment or a building for operations, all subcontractors need to maintain property insurance to protect their assets. This includes property used at the job site.
- Liability insurance – Subcontractors may wish to extend their general liability insurance plan to a higher level of coverage, such as professional liability or umbrella insurance. This helps provide a much higher amount of financial protection.
- Vehicle coverage – Some subcontractors operate a vehicle as a component of business. Commercial auto insurance becomes necessary here.
- Workers’ compensation – If the contractor directly hires and manages employees, a comprehensive workers’ compensation plan is necessary. This is particularly valuable because of the high risks involved on the job.
One way to reduce costs is to utilize a business owner’s policy that covers the specific types of insurance the business needs. This type of policy lumps together most coverage. It also provides the flexibility to customize the plan to meet an individual subcontractor’s needs.
Whether you handle the plumbing, electrical, property site planning, or the actual building of a construction job, you are operating a business. As a result, you need protection to help keep your business safe and to minimize the financial loss associated with factors such as lawsuits. Work with your business insurance agent to help you to create a plan that fits your specific goals and ensures you can operate under a contractor or solely on a construction site.
Buschbach Insurance is here to help you get the business insurance that you need for your operation. Give us a call at (708) 423-2350 to discuss our policy options. One of our agents is ready to help you get a fast, free insurance quote right now.