Subcontractor Insurance
A subcontractor is a vital part of construction projects, whereby they are hired by the main contractor to efficiently and complete the stated tasks given to them to help complete the project as a whole. This may include manual labour, managing health and safety, ensuring machinery is working as it should, and any other tasks they are obligated to do as stated by the contractor. This is why subcontractor insurance is so important.
They are often sought out due to their qualification in a specific area of expertise, such as roof, plumbing, electricity, concrete or painting. Construction is a laborious profession, and there are many risks associated with working in this profession, so insurance is obtained to decrease the costs that these risks come with.
If you would like to read more information or learn more about the pricing of business insurance, you can do so here.
Types of Subcontractor Insurance
Even though there are many types of subcontractors, some general covers apply to each one and ensure they are covered against the most common accidents. Additions to policies must be discussed with individual insurers.
Public liability insurance
Public liability insurance is included in almost every subcontractor insurance because they work for clients they encounter and often visit the site. This cover protects the business against claims that their services either injured clients or destroyed their belongings. It is helpful not to lose money and ensure that the third party affected is compensated.
For instance, if a subcontractor was hired to paint a house as a project, and in doing so, dropped a pot of black paint on some of the furniture before covering it, they could be sued by the client. The insurer would consequently evaluate the claim and decide on the amount of money the client should be compensated for to replace or fix her furniture. Moreover, the legal fees if the damage was more severe and this claim was taken to court would also be covered under the policy.
Business equipment and tools insurance
Business equipment and tools insurance comes in handy for anyone in the building business, as such things can be expensive to replace and may be detrimental to the subcontractor. This may include hammers, screwdrivers, bolts, drills, pliers, wrenches, paint rollers and any other tools utilised, depending on what type of work you are hired for. Although these items may seem reasonable to replace without insurance, it must be considered that there are often many of them, and they may all be damaged at once.
Ensuring every piece of equipment is the best way to achieve comprehensive cover. However, it is an option only to insure the equipment you decide on. Typically, events covered are fires, floods, earthquakes, storms and theft, leading to everything needing replacement. Unfortunately, equipment and tools insurance does not cover plant machinery like bulldozers and tower lifts, essentially all heavy and oversized vehicles or pieces of equipment.
Plant insurance can be added to the policy when negotiated with the insurance company, but it must be noted that not all insurers offer this.
Personal accident insurance
Personal accident insurance for subcontractors is heavily encouraged because it provides cover for any injuries sustained outside of work, resulting in the worker not being able to perform their job and requiring rest at home. This includes any accidents from falling down the stairs to colliding into another car whilst driving. In most cases, mental health is also included under the policy.
This is beneficially especially to subcontractors because compared to other professions, the work requires more manual labour and lifting, which is made difficult if the worker has a broken limb or is advised by doctors not to lift heavy machinery. This type of job requires physical presence and cannot be done remotely, which is why this cover is encouraged. This insurance covers lost income.
Employers’ liability insurance
Employers’ liability insurance is also used to cover lost income and pays for medical expenses; however, it is only valid for accidents at the workplace. Nevertheless, subcontractors are prone to accidents on-site because the job is significantly more dangerous than other occupations. Such accidents could include falling off of a ladder, electrocution, pipe explosions and so forth.
A relatively small proportion of subcontractors are sole traders. They do not hire employees, so this insurance is not compulsory as stated by the law, but it is necessary for any company that hires more than one subcontractor.
Subcontractor Insurance
In conclusion, subcontractors work incredibly hard and are responsible for various duties on the worksite. This vast number of tasks makes it more likely for accidents that harm the employees or clients around them and damage equipment or someone’s personal belongings. Through acquiring insurance, the risk of monetary loss because of these incidents decreases.
Find out more about the importance of insurance here.
Other useful links about Business Insurance:
Zurich Business Insurance
Lifestyle Consultant Insurance
Not-For-Profit Insurance
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