Are Your Subcontractors’ Insurance Policies Leaving You Exposed? Here’s What You Need to Know.
As a business owner or contractor, you've worked hard to build your reputation and protect your projects. You trust your subcontractors to meet the insurance requirements, but what if that trust isn’t enough? What if their insurance leaves you exposed when you need protection the most?
Even being listed as an additional insured doesn’t guarantee you’re safe. The truth is, their insurance might not cover the very risks you thought were secured. And when that happens, you’re the one left dealing with the fallout. Imagine this:
One of your subcontractor’s employees gets seriously hurt on your job site, and suddenly, you are being sued. You expect their insurance to cover the claim since you’re listed as an additional insured. But their policy has an exclusion for exactly this type of incident, leaving you to shoulder the costs.
You bring in a subcontractor for a big condo project. Everything’s going smoothly—until something goes wrong. You discover that their insurance excludes coverage for residential work. Now, instead of the subcontractor’s insurance stepping in, you are responsible for the damages.
You hire an excavation crew, thinking their insurance will have you covered. But when subsidence causes serious property damage, you learn their policy excludes coverage for earth movement. Once again, you’re the one stuck with the bill.
These aren’t just minor details—they’re major risks that can put your business on the line. And all the while, you might have a Certificate of Insurance in hand, believing you’re protected.
But a COI is just paper. Real protection means digging deeper. How do you truly protect yourself? Don’t just rely on forms—insist on a subcontractor agreement that goes beyond surface-level coverage. This agreement should specifically state what exclusions can’t be in their policies. This isn’t just about paperwork; it’s about safeguarding everything you’ve built.
When you enforce these agreements, you gain more than just coverage—you gain peace of mind, knowing that if something does go wrong, you're not left standing alone. Because your business deserves more than just hope that things will work out—it deserves real protection.
