Are Subcontractors Covered Under a Basic Construction Policy? 

If a subcontractor isn’t insured, you may be left covering their claims, which can increase your premiums. Etler-Kettenacker Agency offers construction insurance to help Ohio professionals understand their coverage limits.

How Construction Insurance Typically Addresses Subcontractors

A general liability policy may extend limited coverage to subcontractors, depending on the terms. It can also include completed operations coverage for claims after a project ends. Builders risk insurance, however, typically applies to the structure and materials during construction and does not cover subcontractor-related liability.

Common Gaps and Risks

Relying on a basic policy without addressing subcontractor coverage can leave your business exposed to several risks, such as:

• Uninsured subcontractors: If a subcontractor lacks their own insurance, you could be held liable for their actions.
• Contractual requirements: Many project contracts require proof that all subcontractors carry their own insurance, including general liability and workers’ compensation.
• Claims denials: Insurance carriers may deny claims involving subcontractors if they are not properly listed or covered under your policy.

What to Consider When Reviewing or Purchasing Coverage

To manage risk and comply with state regulations, consider the following steps:

• Require certificates of insurance: Always request proof of insurance from every subcontractor before work begins.
• Review additional insured endorsements: Ask your insurance provider about adding subcontractors as additional insureds to your policy.
• Clarify contract terms: Make sure your contracts specify insurance requirements for all parties involved.
• Consult an expert: Work with an experienced insurance agency to review your policies and identify any gaps related to subcontractor coverage.

Get Covered Today

Contact Etler-Kettenacker Agency to request a no-obligation quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.