General liability is often purchased by companies to cover employees who are injured during an accident on the job. However, independent contractors make up a huge amount of the labor force on many company properties, and you may wonder, “Does general contractors insurance cover subcontractors?” The simple answer is no. Many employers wrongly assume they are, which can lead to major problems and potential lawsuits in the future if an accident occurs.
Protecting Your Business
If you want to hire independent contractors to work on your business property, there are a few key things you can do to ensure you are both covered for liability. Before you hire a contractor, check your own insurance policy to see if it covers anyone who is not an employee. If it does not, require any contractor you hire to be insured under their own general liability coverage. That way if they get injured, they are covered by their own insurance.
Contractors should have their own general liability insurance for several reasons. Not only does it protect themselves and anyone employed under them from medical costs after injuries, but it protects them from any damage they might cause on the property. It may also be necessary to have it because of state laws. All state laws vary, so you should check to see if your state requires general liability coverage.