Insurance Options for Independent Contractors

are subcontractors covered under contractors insurance

As an independent contractor, you will find yourself working for others and their companies. When taking on jobs, it is best to ask are subcontractors covered under contractors insurance. Some policies will cover subcontractors but some will not, meaning as an independent contractor you will need your own insurance. The following insurance policies should be considered as an independent contractor.

Professional Liability

Professional liability, also known as errors and omissions (E& O) insurance, protects a subcontractor if a mistake is made and a client feels tasks were not performed properly.

In the face of lawsuits, it covers the cost of:

Legal defense
Damages to be paid
Court settlements

General Liability

Are subcontractors covered under contractors insurance? When dealing with general liability insurance, they usually are not. General liability covers instances of property damage or injury, and some primary contractors will not work with subcontractors who do not have proof of this insurance. 

Workers Compensation

This insurance helps cover any medical and disability costs that may occur when you are injured on the job. While regulations vary from state to state, independent contractors may not be legally required to be covered under the primary contractor’s workman’s compensation policy.

While being a subcontractor allows the independence of working a variety of jobs for different companies, it is best to ask about insurance policies when accepting a job to make sure you are fully protected.