In most cases your insurance will not cover your subcontractors. In some cases it may be found that both you and your subcontractor are responsible for a property damage or personal injury claim. This is known as shared responsibility, and generally a percentage will be allotted to each of you.

Who is liable the contractor or subcontractor?

The contractor is responsible to the client for the building job including the part performed by the subcontractor.

What is a contractor liable for?

Contractor General Liability Insurance protects contractors financially from amounts they become obligated to pay due to damages or medical payments because of bodily injury, property damage or personal/advertising injury to third parties occurring during the policy period caused by or relating to the contractor’s work …

Do you have to have insurance for a subcontractor?

The contract often stipulates that the subcontractor must be insured, and if so, it’ll say what insurance the subcontractor is required to have. If the subcontractor cannot prove that they have a valid policy of insurance in force, they won’t be allowed on site and won’t be able to work.

Can a subcontractor claim against the main contractor?

Even if the main contractor is insuring the project, they won’t be insuring all of the risks that a subcontractor faces. Even if there is a master insurance policy covering the public liability risk it is still possible for a subcontractor to have a compensation claim made against it.

When do subcontractors need to cover work in progress?

The main contractor may also stipulate that the subcontractor is required to cover the work in progress and any materials on site, particularly if the main contractor is a project manager rather than a contractor that is only using subcontractors for specialist tasks.

Can a subcontractor not be paid if the truck breaks down?

For example, if a subcontracting driver’s truck breaks down and the load can’t be delivered, the subcontractor might not get paid, whereas an employee driver would most likely continue to be paid. Step back and look at the work activities being done by your people.