Subcontractors and artisan contractors are professionals who are held to a very high and strict expectation of insurance requirements. These requirements are so strict because these types of professions are generally providing services which could put the client or their property at a risk for significant harm if the work is not completed properly and if the professional does not have the proper insurance coverage. In fact, in order for these professionals to begin work on a job site, they are required to show proof of insurance coverage before any work can be performed and before they are even allowed to be present on the job site. There are many different types of professional insurance coverages that these professionals should have.
General Liability Insurance
At the most basic level of insurance coverage, all subcontractors and artisan contractors should carry general liability insurance. This is the most popular line of commercial insurance as it provides protection in the event that damage is caused to the property by the subcontractor or artisan contractor while they are performing their job duties. This damage can be something that is minor and recognizable immediately, such as scratching hardwood floors while moving appliances and equipment through the home, or something that is more severe and may not be caught until later on such as improper plumbing leading to mold in the home. It is important for subcontractors and artisan contractors to carry general liability insurance coverage of their own because the companies they are working for will typically have an exception included in their own general liability insurance coverage that will exclude the subcontractors and artisan contractors from the insurance coverage.
Workers Compensation Insurance
Workers compensation insurance coverage will provide coverage for medical and disability costs associated with an on-the-job related illnesses and injuries. Because the work subcontractors and artisan contractors perform is physically demanding it is no surprise that work-place injuries and illnesses are not uncommon within the insurance industry. If a subcontractor or artisan contractor does not have their own workers compensation insurance coverage, they may also be added on to the workers compensation coverage of the general contractor hiring them, who can then pass the cost of the coverage back onto the subcontractor or artisan contractor. Most general contractors will require a subcontractor or artisan contractor to show proof of workers compensation insurance coverage before they will hire the contactor and allow them on the job site, as the general contractor will be the one on the hook for financial liability if the worker is injured and does not have their own workers compensation coverage.
Commercial Automobile Liability Insurance
Subcontractors and artisan contractors must rely on their vehicle heavily to get them from one job site to another. Because those in the construction industry tend to drive significantly more than other industries, the probability of a work-related automobile accident occurring significantly increases as well. It is important for subcontractors and artisan contractors to make sure they have commercial automobile liability insurance coverage to cover the costs of any damages or injuries resulting from a work-related automobile accident, as these damages typically will not be covered by other lines of coverage such as health insurance or workers compensation insurance.
Property Floater Insurance
Property floater insurance is a much more specialized form of insurance coverage that is designed to work the same way as a stand-alone property insurance coverage would work, but extending that coverage to property that does not remain in one location. Because subcontractors and artisan contractors typically carry many tools with them in their personal or work vehicles from one location to another, and because these tools are typically very valuable and can be easily re-sold for cash or pawned, these vehicles are strong targets for automobile and personal property theft. Without this specialty coverage, if a subcontractor or artisan contractor’s vehicle is stolen or broken into and their tools stolen, they will be required to replace all of their tools at their own out-of-pocket cost; or face the inability to continue to work until they are able to properly replace the tools they need.