Whether you run a small plumbing company or a large-scale excavation operation, securing the right subcontractor insurance NL is essential when you sign on as a subcontractor for a construction project. While the general contractor (GC) oversees project completion and timelines, subcontractors face unique liabilities if things go wrong.
You could face a workers’ compensation claim if an employee is injured on-site. Faulty workmanship might result in lawsuits for damages or injuries. Missing deadlines or exceeding budgets could lead to legal action by the GC. Even disputes between the project owner and the GC could leave you caught in the middle. The financial risks are real, and a significant loss could jeopardize your business.
The solution? Partner with an insurance expert like Wedgwood to protect you against these risks.
Key Insurance Protections for Subcontractors
Here’s a checklist to help you understand the basic coverages every subcontractor should have:
Licensing and Bonding
Ensure you’re licensed and bonded according to provincial requirements. You may also need a performance bond for specialized work or large projects, which protects the GC if you default on your contract.
Work Contracts
Always work under a written contract with the GC. The contract should clearly outline the scope of your work, payment terms, project timelines, and claims procedures. This document is your first line of protection.
Insurance Requirements
Your GC contract will specify the insurance coverage you need, often including commercial general liability (CGL) and workers’ compensation. It’s common for GCs to require an indemnity clause, holding them harmless for claims related to your work.
Certificates of Insurance
Provide certificates of insurance that demonstrate your coverage. These documents meet GC requirements and set you apart when bidding on projects by showing you’re prepared and compliant.
Understanding Key Coverages
Commercial General Liability (CGL) Insurance
CGL is a cornerstone for subcontractors, covering third-party injuries, property damage, and legal defence costs. For example, if a visitor is injured at the site or your work causes damage, CGL protects you financially. However, CGL doesn’t cover negligent professional acts—those require separate professional liability insurance.
Wrap-Up Policies
For large projects, the owner or GC may provide a controlled insurance program, or “wrap-up,” covering all contractors. These policies include CGL and workers’ compensation but require subcontractors to adjust their bids to reflect reduced insurance costs.
Additional Coverages to Consider
While CGL and workers’ comp are essential, other coverages can safeguard your business further:
- Commercial Property Insurance: Protects assets like buildings, tools, and equipment from theft, fire, and other losses.
- Business Owners Policy (BOP): Bundles liability and property insurance, often at a lower cost.
- Inland Marine Insurance: Covers tools and materials in transit or on job sites.
- Builders Risk Insurance: Protects construction projects in progress, including materials and equipment.
- Professional Liability Insurance: Essential for subcontractors offering design, engineering, or surveying services.
Protect Your Business with Subcontractor Insurance NL from Wedgwood Insurance
Taking on subcontracting work can be both rewarding and challenging. To avoid financial setbacks, ensure you have a robust subcontractor insurance NL plan tailored to your business needs. At Wedgwood, we specialize in helping Newfoundland and Labrador contractors protect what matters most. Contact us today for a personalized consultation and secure the coverage you need to succeed.
About Wedgwood Insurance
Wedgwood Insurance has offices in St. John’s & Corner Brook and is Newfoundland & Labrador’s largest independent insurance broker. We provide straightforward home, auto & business insurance advice.
With over 280 Google My Business reviews, experience the Wedgwood difference with expert advice from our dedicated team. We ensure that every client has the coverage that best suits their needs through upfront complimentary consultations and midterm reviews.
Contact Us
