Contractors & trades
Job-site risk does not stay in one policy.
Contracts, vehicles, employees, tools, subcontractors and completed work need a coordinated review.
Coverage contractors commonly consider
- General Liability and completed operations
- Commercial Auto and hired/non-owned auto
- Workers’ Compensation and Employer’s Liability
- Tools, equipment, installation and builders risk
- Commercial Umbrella or Excess Liability
- License, permit, performance and payment bonds
Subcontractors change the risk
Use written agreements, collect current certificates and request the endorsements the contract requires. A certificate alone does not make your company an additional insured or amend either policy.
Liberty Union can also discuss performance and payment bonds for qualified contractors pursuing larger projects.
Before the job begins
Review the contract’s indemnity and insurance provisions with appropriate legal and insurance advisers. Confirm the named insured, project, operations and required endorsements. Establish a process for collecting subcontractor certificates and endorsements before work starts and again at renewal.
Tools, installation and projects
Commercial Property may not follow tools to every job. Inland Marine can be used for mobile equipment, contractors’ equipment, installation materials and other property away from the premises. Builders Risk may protect a project under construction, but responsibility for arranging it should be clear in the contract.
Bonds are not insurance for the contractor
A surety bond is a three-party credit relationship. If the surety pays a valid claim, it generally expects reimbursement from the bonded contractor and indemnitors. Performance and payment bond capacity depends on financial strength, experience, work program and the size and terms of the project.
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