How Do You Get Coverage for Your Subcontractors? 

Hiring subcontractors is a common practice for many Illinois businesses, especially in construction and skilled trades. Your subcontractors must be properly insured to meet legal requirements and financially protect your business from unexpected risks.

Why Insuring Subcontractors Matters

When you bring subcontractors onto a job, you may be exposed to additional liability if they are not adequately insured. If a subcontractor causes property damage or injury, your business could be held responsible. Many contracts and state regulations also require proof of insurance for all parties involved in a project.

Essential Types of Coverage for Subcontractors

The following are key insurance policies to consider when working with subcontractors in Illinois:

• General liability insurance may cover third-party claims of property damage and bodily injury caused by subcontractors’ work.
• Workers’ compensation insurance may pay for medical bills and lost wages if a subcontractor or their employees become ill or injured due to their work.
• Professional liability insurance may cover claims related to professional mistakes or negligence.
• Commercial auto insurance can help financially protect against accidents and related liabilities if subcontractors use vehicles for work.
• Business interruption insurance may help cover payroll, rent, taxes and other ongoing expenses if your business must temporarily halt operations due to a covered event.

How to Secure the Right Coverage

To make sure your subcontractors are properly insured, consider these steps:

1. Request certificates of insurance—Always ask subcontractors to provide proof of their insurance before work begins.

1. Review coverage limits—Make sure their policies meet your project’s requirements and any state or contractual obligations.

1. Consult an insurance professional—Our team can review your contracts and help you determine what coverage is necessary for your specific situation.

Learn More

The experienced team at Illinois Insurance Family understands Illinois business insurance regulations and can guide you through the process. We work with you to identify coverage gaps and recommend appropriate policies. Contact us today to get started.

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.