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Need to Know: Contractors and Sub-Contractors


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If you are a general contractor you probably use sub-contractors for a majority of your labor.  As the economy picks back up we are seeing more and more contractors being busier than ever.  This is great news!    However, more jobs also equals more risk (and potentially more cost to you) especially when it comes to uninsured sub-contractors.  Insurance companies are starting to crack down on GC’s using uninsured subs in terms of both general liability and worker’s compensation.     Here are the items you must secure from your subs before they start working for you:

1. A Certificate of Insurance indicating the presence of Commercial General Liability and Workers Compensation policies in force during the contract period.

2.  In lieu of a Certificate of Insurance, a copy of the independent contractor’s or subcontractor’s CGL and Workers Compensation policies.

“If one of the above items is not provided at the time of the audit, the payroll or cost of subcontracted work for the subcontractors will be included in your insured’s payrolls on their CGL and Workers Compensation policies causing an increased premium.” (source: Auto-Owners Insurance)

If you have any questions please contact or