Do Subcontractors Need Their Own Insurance? 

When working on construction or business projects in Nevada, it’s essential for general contractors and subcontractors to understand the importance of proper insurance coverage. At Liberty Choice Insurance, we frequently receive questions about whether subcontractors need their own insurance policies. The answer is almost always yes, and here’s why.

Why Subcontractors Need Their Own Insurance

Subcontractors play a crucial role in many projects, but their work also introduces risks. If a subcontractor lacks proper insurance, the general contractor or business owner may be held responsible for accidents, property damage or injuries. This can result in costly claims, project delays or legal disputes.

Having their own insurance can help subcontractors:

• Show professionalism and credibility
• Maintain business assets and support employees
• Meet contractual requirements set by general contractors or project owners
• Avoid gaps in coverage that could leave everyone exposed to risk

Types of Insurance Subcontractors May Need

Many contracts require subcontractors to carry specific types of insurance. Common policies may include the following:

• General liability insurance may cover third-party injuries or property damage related to the subcontractor’s work.
• Workers’ compensation insurance may cover medical costs and lost wages for work-related injuries if the subcontractor has employees.
• Commercial auto insurance may apply if vehicles are used for business purposes.
• Professional liability insurance may address claims of errors or negligence in specialized trades.
• Additional insured endorsements may require subcontractors to add general contractors as additional insureds on their policies.

How Our Team Can Help

At Liberty Choice Insurance, we work with local business owners, general contractors and subcontractors to help address coverage needs. Our team reviews contracts, recommends policies and outlines requirements to help keep your projects moving forward.

Contact us now to discuss your subcontractor insurance options.

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.