What Happens If My Subcontractor Does Not Have Insurance?

myCOI brings certificate of insurance compliance management to a whole new level. We protect your company against the risk of underinsured claims, costly litigation and failed audits.

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Automate Your COI Tracking

There’s no more need to worry about stacks of certificates cluttering up your office or hours of frustrating phone calls and emails to chase down certificates. myCOI Central provides your company with a solution to automate your insurance certificate requests, collection, and compliance resolution, while also giving your team a single, centralized repository to view compliance.

Protect Your Business From Costly Claims

Ask your CFO or Risk Manager just how much claims and lawsuits can cost your business. If you are collecting certificates just to confirm they were received, you have no guarantee that your requirements are being met. myCOI Central is built on a foundation of insurance industry logic to ensure you remain protected with the appropriate coverage.

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What Our Customers Say

OUTSTANDING!! In my opinion, this has been the best program I’ve had the pleasure of using. From all the services provided within the program and the exceptional customer service, this has made my job duties very manageable. I cannot say enough good things about this program. I highly recommend it!

Having one place for our customers to upload their insurance certificate makes tracking insurance certificates much easier. We use to internally file and collect insurance certificates from customers and it was a challenge to collect all of that paper and to effectively track the insuarnce certificates.

We switched to myCOI from another insurance tracking system because we were looking for a more involved vendor that could do more for us than just track certificates. We needed help with compliance and having a system that could contact vendors and keep on them until they became compliant with insurance. myCOI does this for us and we have very few non-compliant vendors compared to the number we had in our last system.

The product has met our expectations in that it has allowed us to regain some time that was previously spent doing all of the administration of insurance cert requests, reviews and acceptance. With that, we have been able to reallocate resources to more pressing business needs rather than insurance certificate management.

Our clients are thrilled with myCOI and how their compliance levels have been elevated beyond expectations. The reports and analytics are so valuable in measuring activity and compliance achievements. The system functionality is easy to use. The team are true partners.

MyCOI is a very great portal, a space where to keep organized all our certificate of insurance for our vendors. With the advantage that are online, always accessible and no paper backup is needed.Once you learned how to navigate into the portal and how to use the report tab you will have a world opening to you. In just one place you can access all the vendor information, policy expiration date, non-compliant policy line and see the last date when a document was updated.Our Senior Client Success Manager, [sensitive content hidden], she is always on top of our requests, and she replies promptly.

MyCOI has been a fantastic partner for our company. With frequent meetings with our dedicated account manager, ongoing communication, and the ability to customize our insurance needs with precision, we’ve seen exceptional outcomes throughout our portfolio. [sensitive content hidden] has provided invaluable assistance, and the review team is exceptionally competent and amicable, even when we inundate them with urgent requests. Overall, it’s been an excellent experience, and we’re eagerly anticipating our continued collaboration with them.

myCOI has helped our company go from drowning in unreviewed cois to getting our insurance review under control. Their team has been an amazing support and resource, and helped us to navigate the Essentials program, later transitioning to Concierge service as the workload was more than our team was able to manage. The beauty of this platform is that it provides a single, central hub for clients, agents and vendors to access, update and communicate. Every myCOI team member with whom I have worked has provided excellent service, been pleasant, knowledgeable, and provided quick response times. The quarterly meetings are beneficial to recap what is going well, where we need to improve and have questions answered. I highly recommend myCOI.

myCOI provides amazing custom support and they make the platform very easy to navigate. The myCOI team is always very helpful and quickly responds to my questions or goes out of her way to direct me to the correct team member who is able to assist me.

myCOI has amazing customer support. Our account representative meets with us quarterly to keep up-to-date on how our group is feeling about utilizing the system and interfaces with us day-to-day, as needed, to address any issues we encounter with agent notes, reviews, etc. It has been an incredibly efficient and beneficial relationship since day 1.

The myCOI platform has been so easy to work with from multiple angles. Because there are multiple stakeholders, we are all notified and kept in the loop if there are any COI tracking issues that need to be revised.

What Happens If My Subcontractor Does Not Have Insurance

Construction contractors have a lot on their minds, mainly their current job. If you are one of these busy people, then you already know what you have to face daily. You might not think much about lawsuits while you run your business. Why would you? You adhere to strict safety standards. You ensure your subcontractors do, too. You check each subcontractor’s history and only hire the best. However, projects can turn sour dues to circumstances out of your control. A customer or client can suffer an injury due to a subcontractor’s negligence. Even a false claim can lead to costly lawsuits.

Liability insurance can help pay an attorney who can negotiate a settlement or defend you if the case goes to trial. If you lose the lawsuit, liability insurance can also cover all or some of the damages and legal costs, depending on your policy limits.

You can still be sued for your subcontractor’s errors when you are the primary contractor. If the subcontractor does not have liability insurance, then you might have to foot legal expenses and payouts yourself. All it takes is one such instance to wipe out your company’s assets – and your personal ones.

An easy way to protect yourself against subcontractor errors is to require that each subcontractor you hire maintains their own liability insurance. Before you hire them, you should not only investigate their insurance status but also insert language into your contract that requires them to possess sufficient coverage. Additionally, you should request they submit proof of a policy, typically in the form of a certificate of insurance. You will also have to verify and monitor each certificate to track the coverage.

What’s a contractor? What happens if my subcontractor does not have insurance? What if subcontractor does not have workers comp?

This article will touch on these and other related topics. However, if you have questions about a subcontractor workers’ comp waiver form (what is a workers’ compensation waiver for subcontractors), what to do if a contractor lied about insurance, or any subject not addressed in this article, then you should get in touch with an insurance agent or broker. They can help you solve issues that are relevant to your situation.

Does My Subcontractor Need Insurance

Let’s tackle a few common questions regarding subcontractors and insurance.

Do subcontractors need liability insurance?

Liability insurance can offer financial protection for subcontractors and the companies that hire them. In addition, subcontractors who are insured are demonstrating that they take accountability for their work and commitment to safety.

I hired a subcontractor for a job that takes a few hours to complete. Does my subcontractor need insurance?

Regardless of length, every job possesses some element of risk. Every subcontractor possesses an element of risk. Subcontractors should maintain coverage at all times to mitigate losses if the worst-case scenario happens.

What kind of insurance does a subcontractor need?

Although the type of insurance varies based on industry, a subcontractor should have general liability insurance, which can cover property damage or injuries.

How much does subcontractor insurance cost?

Rates depend on many factors including location, claims history, and industry.

What happens if my subcontractor does not have insurance?

If your subcontractor does not have insurance, then you might have to pay for legal costs and damages in the event of a claim.

What happens if a 1099 employee gets hurt on the job?

A 1099 employee can sue the company that hired them if they feel the company did not do enough to prevent the injury.

General Liability Audit Subcontractors

What happens if my subcontractor does not have insurance? This is a common question many companies may encounter. Another common topic involves general liability audits. This evaluation examines a company’s payroll and risk exposure to determine if the company is paying the correct amount for general liability insurance. Plus, it determines if the company has the proper amount of coverage. The audits are often performed by insurance issuers. As such, if you have questions about them, then contact your insurance issuer. They can tell you what each step involves and how to prepare.

Your insurance issuer can also help you answer any general contractor subcontractor workers’ compensation questions. Is the cost of general liability insurance based on payroll? Are there special general liability audit subcontractors stipulations? Is there a general liability payroll limitation guide for owners and officers 2021 edition? Your insurance issuer should either directly answer your questions or point you in the right direction. If they do not seem willing to help you, then you might consider switching issuers. Many issuers will compete with each other for your money. Use this to your advantage and get the most helpful issuer you can find.

Uninsured Contractor Waiver

“Uninsured Contractor Sues Homeowner” is not a headline any homeowner or contractor business owner wants to read. If you choose to not require your subcontractor to have coverage, then you can request they sign an uninsured contractor waiver before they begin work. A contractor waiver and release form frees you from all liability in situations where the subcontractor can sue you in case something goes wrong.

A contractor waiver of liability form is no substitute for insurance. Hiring a contractor without insurance creates many opportunities for disaster to strike. As a responsible person, you should eliminate as many of these instances as you can. You should replace a handyman liability waiver form and an independent contractor release of liability form with the subcontractor’s certificate of insurance.

A certificate of insurance is proof that a subcontractor is meeting their company’s insurance requirements. Companies that request them must check each one for accuracy. This can prove daunting if a company hires hundreds of subcontractors or more. They can automate certificate of insurance tracking with myCOI to further protect their company from bogus and lapsed coverage.

Does Homeowners Insurance Cover Uninsured Workers

Homeowners have a lot to worry about when they hire a handyman to perform work for them. While contractors have to address their own questions (What happens if my subcontractor does not have insurance? What insurance does a contractor need?), homeowners have to know a few things before they hire people to work on their property. For instance, if you are a homeowner, you should know whether to require a liability waiver for workers on your property or insurance for workers on your property. Here are a few common questions and answers:

Does homeowners insurance cover handyman injuries?

Homeowners insurance generally covers any injuries on your property, including those a handyman sustains.

What happens if a handyman gets hurt on your property?

In many cases, homeowners insurance policies should cover legal costs and damages.

Does homeowners insurance cover uninsured workers?

A homeowners insurance policy typically does not cover uninsured contractors. Therefore, requiring any workers you want to hire to be insured should be one of the first things you do before hiring them.

Uninsured Subcontractors

Uninsured subcontractors can place the company or person that hired them at great risk of financial losses. Knowing what contractors and subcontractors do can drive home the need to only hire insured ones. Here are a few questions and answers to help you understand why anyone who performs any type of contract work for you should be insured.

What is a contractor? What does a contractor do?

A contractor is someone who agrees to supply services or goods.

What is a general contractor?

A general contractor oversees construction sites and similar locations.

Do subcontractors get workers comp?

Some contracting companies do not provide workers comp for subcontractors. However, subcontractors can purchase workers’ compensation coverage for themselves.

Are construction and similar fields dangerous?

The very nature of these jobs is dangerous. Heavy machinery and dangerous work conditions can create an unsafe environment.

Shouldn’t contractors follow safety guidelines?

They should but forces out of their hands can cause them to hurt themselves or others. A sudden weather event can turn a relatively safe job site into a minefield of possible injuries or worse.

Are Subcontractors Covered Under Contractors Insurance

Contractor insurance is a package of insurance policies that help protect construction businesses if they must deal with lawsuits, on-the-job injuries, equipment damage, and more. The following questions and answers can help you understand the concept better.

What happens if my subcontractor does not have insurance?

If your subcontractor is not insured, then you or your company might have to pay for legal costs and damages if they file a claim.

Are subcontractors covered under contractors insurance?

Subcontractors may not always be covered under basic contractors insurance policies. Contractors insurance policies typically only cover full-time employees.

Does general liability insurance cover subcontractors?

Although individual plans vary, many general liability insurance policies exclude subcontractors.

Does my business insurance cover independent contractors?

You should refer to your business insurance policy to see if it covers independent contractors. If you need assistance, you should get in touch with your insurance issuer. They should know for sure since they sold you the policy.

Should my company create and enforce subcontractor insurance requirements?

You should protect your company against expensive claims and lawsuits. Requiring COIs from the subcontractors you hire to have coverage can provide a solid level of protection.

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