How Does Insurance for Subcontractors Protect Against Liability Claims in Colorado?

Man sliding a piece of wood across a table saw.

For subcontractors in Colorado, navigating the construction landscape comes with inherent risks. Accidents happen, and even the most meticulous work can lead to unforeseen issues. That’s where robust insurance for subcontractors steps in, providing crucial financial protection against potentially devastating liability claims. Understanding how this specialized coverage works is essential for safeguarding your livelihood and assets in the Centennial State.

Bodily Injury and Property Damage Coverage: Protecting Against On-Site Accidents and Third-Party Claims

Man using a buzz saw to cut wood on a job site, demonstrating the importance of insurance for subcontractors to cover potential worksite liabilities
Proper insurance for subcontractors in Colorado safeguards against liability claims and keeps your construction projects legally compliant and protected.

A cornerstone of insurance for subcontractors is its coverage for bodily injury and property damage. Accidents on construction sites are unfortunately common, and as a subcontractor, you could be held liable if a third party – whether it’s a general contractor, another worker, or a member of the public – sustains injuries at your work area. Similarly, your actions could inadvertently cause damage to someone else’s property.

This coverage within your insurance for subcontractors policy helps protect you financially in such scenarios. It can cover the costs of medical expenses, legal defense fees, and settlements or judgments if you are found liable for bodily injury or property damage. For example, if a delivery driver slips and falls on debris at your job site and incurs medical bills, or if your work accidentally damages a neighboring property, this coverage can help shoulder the financial burden, preventing it from falling solely on your shoulders. Having this protection in place provides crucial peace of mind while you focus on your work in Colorado.

Insurance for Subcontractors and Completed Operations Coverage: Protecting Against Claims Arising from Finished Work

The liability associated with your work doesn’t always end when the project is finished. Claims can arise months or even years after a project is completed due to alleged defects or negligence in your work. This is where completed operations coverage, a vital component of comprehensive insurance for subcontractors, comes into play in Colorado.

This coverage protects you against claims of bodily injury or property damage that occur after your work is finished and you’ve left the job site. For instance, if a deck you built later collapses and injures someone, or if faulty plumbing you installed causes water damage after the project’s completion, completed operations coverage can help cover the resulting expenses. Given Colorado’s specific building codes and potential for weather-related issues impacting construction, this protection is particularly important for subcontractors working on long-term projects or those with a higher potential for post-completion claims. It provides a safety net, ensuring you’re protected even after you’ve moved on to the next job.

Insurance for subcontractors is a critical investment for anyone working in the construction trades in Colorado. Its bodily injury and property damage coverage safeguards you against on-site accidents and third-party claims, while completed operations coverage offers vital protection against liabilities that may arise from your finished work. Don’t leave your business vulnerable to potentially devastating financial losses. Reach out to Prince Insurance today for your insurance needs and secure the comprehensive protection you deserve in Colorado.

Why Subcontractors Need Insurance

While you’re busy trying to build up your business, it’s easy to forget that you need to get insured yourself. But if you’re planning on hiring subcontractors in the future, you can’t forget about this step. Subcontractors can’t work without insurance. And even if they can, many of them will not be able to work with your company because they won’t have their own insurance policy in place first.

The Risks of Being Uninsured

If you hire subcontractors, is vital for them to have insurance.

If you hire subcontractors, you know that the risk of being uninsured is very real. Without an insurance policy, you are personally responsible for all damages that occur on the job. This means when something goes wrong, your personal assets could be put at risk. For example, let’s say one of your subcontractors trips over a piece of equipment that wasn’t fully secured, falls and sustains severe injury. The injured employee might sue you for their pain and suffering as well as other related costs such as medical expenses and lost wages from missed workdays. You’ll have to pay them out-of-pocket if you don’t have coverage or you can face getting sued yourself.  Even worse, if the incident results in death then family members can also sue for wrongful death!

What Types of Insurance Do Subcontractors Need?

While there are many different types of insurance for subcontractors, some of the most common include general liability insurance, workers’ compensation insurance, and auto liability insurance. General liability insurance will help protect your business from potential lawsuits that may be brought against you as a result of your work with another company. Workers’ compensation insurance will help protect you in case an employee gets hurt on the job or has an illness related to their work. Auto liability insurance can come in handy if one of your vehicles is involved in an accident with someone else’s car. The right type of insurance coverage will vary depending on what type of subcontracting work you’re doing.

Why Insurance for Subcontractors Is Essential

Man sliding a piece of wood across a table saw.

Let’s say you’re a construction subcontractor trying to convince a contractor to give you work. You have all the necessary skills and materials, but you’re missing one crucial thing – insurance.

Why does not having insurance affect your ability as a subcontractor to get work on a construction site? To give you a tip, it has something to do with accountability.

Continue reading to learn more about why not having insurance is often the single biggest reason why subcontractors don’t get work.

Risk of Injury

Not having insurance – a seemingly small detail that doesn’t affect your ability to do your job – automatically makes your contractor more accountable. This is because, without insurance, employers become more at risk of having to pay you for any injuries, should they occur.

Construction subcontracting tends to come with more risk of injury, and therefore the need for insurance is higher.

With an insurance policy in place, however, that responsibility becomes your insurance company’s–not your employers. Therefore, employers are much more willing to hire you because they know they won’t have to pay you in the event of an injury.

Best Policies for Subcontractors

Now that you know the importance of insurance for subcontractors, the next step is to choose the right coverage for your needs.

For construction subcontractors, a good place to start is a comprehensive construction insurance policy. With this type of policy, you can expect coverage for:

  • General Liability: A broad type of policy that provides your company with liability insurance for general business risks.
  • Commercial Auto: Covers physical damage and liability coverages for vehicles used by your business.
  • Workers’ Compensation: Offers coverage if an employee suffers injury or illness while on the clock or within the scope of their job duties.

However, as a subcontractor, or someone who owns their own business, you’re also going to probably need one or all of the following additional coverages:

Armed with these types of policies, you’re sure to increase the likelihood of getting hired for construction-related projects as a subcontractor.

Finding an Insurance Agent

The final step to securing the insurance you need as a subcontractor is to find the right insurance agent, looking at such factors as experience, customer reviews, and the ability to provide insurance for subcontractors in the first place.

To start off in the right direction, check out Prince Insurance Group. We offer one of the most diverse insurance menus on the market, with plenty of options specifically designed to work for subcontractors (including the types of policies listed in the section above).

Check out your options by getting in contact with Prince Insurance Group today!